Can I change mortgage to get out of joint status?

SassyJ101

I have maybe a strange set up with my mortgage in that I'm joint with my dad, even though the flat is mine and I pay the whole mortgage. It was the only way as a first time buyer that I could get a mortgage as I was at the time on a freelance salary (couldn't guaruntee future income) and the flat was more than they deemed I could afford at the time.

A year on, and my dad is keen to get his name off my mortgage for inheritance tax reasons, so that it's entirely in my name. I'm now earning slightly more, in a full-time permanent contract, but 3.5 time my salary is still about £10k short of the oustanding mortgage. I've had no problem meeting any of my payments, and anyway, my parents are helping me and will continue to do so, so even though on paper I can't afford it, in real terms I can afford it.

My current tracker mortgage with Halifax has no penalties for leaving it at any time. I'm not especially happy with the customer service I received during application, nor since I started the mortgage and I'd like to move the mortgage elsewhere. I have questions though:

As I already have a mortgage and have met my payments with no probs, will it be easier for me to get a mortgage now in my own right, or perhaps with my dad as guarantor rather than joint?
Will removing my dad from the mortgage be straightforward in legal terms. At the time of purchase he agreed and signed that the property and the equity in it was mine in the event of a sale.
Where is best to go for a good, flexible lowest rate mortgage right now? Bearing in mind they'll have to be flexible in their terms of offering the loan to someone who at first glance shouldn't be able to afford it?

Hope all that makes sense, and any advice is greatly appreciated.

herbiesjp

There are lenders that will offer more than the 3.5 times salary.

You would normaly look for a scheme that would pay legal fees for you, however, as it is not a like for like swap (you are taking dad off) you will incur extra charges - some schemes offer a cashback instead of the free legals so this might be a better option for you.

SassyJ101

Any suggestions as to the lenders who'll do more than 3.5, just so I can start looking?

MarkyMarkD

Northern Rock always offer good lending multiples, although their products aren't the cheapest.

MarkyMarkD

Yes, Scott, you are right except that he doesn't particularly want to stay with his existing lender and his existing product is rubbish as well! If he's going to switch products, Halifax do NOT let existing borrowers have their best deals, so he might as well remortgage and do the ownership change at the same time IMHO.

herbiesjp

With a lot of guarantor mortgages - the guarantor still has to stay on the deeds - which is what the OP is trying to take off.

High street lenders will offer above the 3.5 times income multiple, and therefore solve the problem.