Tenants in Common - remortgage without consent of other owner?

BFree

Can I change a mortgage from interest only to repayment without the consent of the other owner owner? We are tenants in common, and both mine and the other owners name is on the mortgage. However I am the only one who qualifies for the repayment mortgage. The other owner will not agree to change the mortgage type.

Any advice much appreciated.

anselld

Presumably the other owner will not agree because they cannot afford or do not want to make capital repayments. So what are you trying to achieve by forcing the change?

pjread

Chances are you could just make additional ad-hoc capital overpayments if your existing IO product allows, and achieve largely the same thing but save the aggravation?

pinkteapot

I can't image it's possible to change the terms of a joint mortgage without the signature of both parties. I should certainly hope not anyway!

wileycat

I would build up you're repayment vehicle separately from the mortgage and keep it separate, unless you have a different reason leave it as interest only.

If you overpay on a Tenant in Common, remember unless you have an agreement between the two of you it goes into the equivalent of a joint account.

BFree

The interest only status of the mortgage was only intended to be temporary whilst I was out of work, we qualified at that time for MIR and the other owner claimed this in their own name. Now that I am working again, I am in position to start repayments. However as the interest only mortgage has gone on too long, and none of the capital has been paid off, financially it makes more sense to now start paying it as a repayment mortgage. It will benefit both of us in terms of equity when the house is sold.

We started out as joint tenants but in the interim the other owner had started legal proceedings against me to claim more than the 50/50 split in the hope that as the MIR was being paid through them whilst I was out of work, that would entitle them to more than 50%. The other owner has only just recently severed the joint tenancy, thus converting to tenants in common. So naturally, the longer the mortgage continues to be paid as interest only through them, the more equity they will attempt to claim. Which is why they won't agree to changing the mortgage type.
I want, am able, willing and qualify (whereas they do not) for a repayment mortgage, and financially it benefits both of us. It really is just a legal ploy by the other owner despite the fact that essentially, they would gain more by being fair and agreeing to change the mortgage type.

Foxy-Stoat_3

Sounds like instead of making over payments you should buy premium bonds every month instead of mixing any more of your money with the other owner.

BFree

Foxy-Stoat wrote: »

Sounds like instead of making over payments you should buy premium bonds every month instead of mixing any more of your money with the other owner.

Thanks Foxy, I know what you are saying.

It would be a good investment though if I could switch it to a repayment ....but then again as you say, mixing my money with this person, considering their recent actions, is not without its risks....food for thought.

Foxy-Stoat_3

Think you will have issues if/when you come to sell also.

getmore4less

Claiming equity when there is none as only interest is being paid will be difficult and the calculations will result in a small amount of equity.

Put up some numbers I can do the calculations.

seven-day-weekend

Just save money in a savings account/premium bonds and pay the mortgage off when you are in a position to do so without involving yourself with the other owner.