Removing the second person from a RTB mortgage

bailliebhoy

hello just some quick advice if any one knows?

I live with my mother in an ex-council home. We got a council RTB mortgage with a credit union, we applied jointly to qualify for mums discount, but basically im paying the mortgage and we bought the house. However due to her poor credit rating she is impacting on my credit score i.e for getting a car and such as she appears as a financial associate and she has lots of bad credit. Shes agreeable to this as its me paying the mortgage anyway.


Would it be possible to have the mortgage just in my name? Will that be permitted? and if so how would I go about it?

thanks in advance

kingstreet

Is the lender happy to remove her from the mortgage and is she happy to be removed from the ownership of the property?

bailliebhoy

thanks for getting back to me-she is happy to be removed, im assuming the lender would agree as it was basically only financially viable based on my credit/work history

bailliebhoy

anyone know?

kingstreet

You will be reassessed for suitability as a sole mortgagor.

The lender will only release a borrower if it believes its security isn't compromised. It's easier to get your money back from two people than it is from one.

Senior_Paper_Monitor

Its worse that that I'm afraid .......


While this would be exempt transaction in terms of the Housing Act (and clawback discount) the lender will require that your mum leaves as her continued tenancy (in any form) would impact on their ability to repossess.


We do lots of 'right to buys' and have a number of our original (and other adviser's who did not necessarily give the full health warnings) RTB purchasers coming back to remortgages at the moment (straight remortgages, extra borrowing, convert to BTL, remove elderly parent and various other options) - all are causing difficulties (many affected by MMR changes last year).


I am talking to one lender in particular about a solution to the problem you quote (but I'm not 'holding my breath).


There are potential problems for an older party in terms of deprivation for future care costs (and additional ones where bad credit is involved).


You may well be stuck.

bailliebhoy

ah-thanks all

if anything different turns up ill let u know