Can a Mortgage be Transferred?

belbo_bagins

Hi all,

I'm wondering if an idea I have is feasible or, if not, is there any other approach that we could consider:

My brother currently has a mortgage on his house which he is not living in (he is renting in a different county) and wants to sell the property as soon as he can.

Sadly he has had issues selling and is struggling to make the necessary payments. Therefore is there any way for my name to be added onto the deeds and mortgage and his taken off; essentially I would like to transfer the existing mortgage and house into my name.

If this is possible it could be beneficial for both parties; I take over an existing mortgage without having to outlay any capital (assume there will be mortgage/solicitor fees) and my brother doesn't have any financial debt/ties on the property.

I've read mixed things about the "transfer" of a mortgage, but most suggest that it isn't something that the bank would entertain. I plan to get a meeting with the bank to discuss this option, but was wondering if anybody has had a similar experience or can think of any other possible approaches that could be considered that I could discuss with the bank?

I'm not wanting to take a new mortgage on the property as it would involve investing significant capital. However, the last two surveys on the house both valued the house at higher than the outstanding balance on the mortgage and my salary/credit rating/etc. suggests that I would be suitable for the existing mortgage.

If the mortgage cannot be transferred, is there any other ways in which I could take over the property without any significant investment of capital? Being a joint holder on the mortgage/deeds isn't an option as my brother wants to cut all ties with the property.

Any thoughts are greatly appreciated

Senior_Paper_Monitor

Sale under market value (so the difference provides the deposit) should be possible with a number of lenders. New mortgage needed.

tvfreek

The very short answer to your question is No it isn't possible.

Where ever you've read a mortgage can be transferred its most likely in relation to moving the mortgage from one property to another, not from one borrower to another.

You would need to buy the property although a cash deposit may not be required given your relationship.

amnblog

The route here, as suggested by SPM, is known as a concessionary purchase. Engage a broker to resolve this.

belbo_bagins

Thanks all for your replies; much appreciated.

Interestingly I was told by two different Nationwide advisers this morning that the mortgage could actually be transferred into my name and him taken off the mortgage.

The concessionary purchase is an interesting approach, but was told by a broker this morning that it isn't possible due to it not being between a a parent/dependent. Also the current rate vs existing mortgage doesn't give a better LTV/repayment figure, and I would have to invest capital which isn't really an option.

Thanks again for all your replies .

Thrugelmir

Why do you feel that an injection of capital is required?