Transfer of Equity

Faz_000

Hi guys

just wondering if anyone has any recent experience of TOE with Santander in particular?

Im not sure what the process is - it is pretty much a full application involving affordability interviews etc? I have been told its simpler than a usual application direct with a lender but I dont know what the actual difference is and if it is indeed simpler?

I will be contacting the lender soon but just wanted to see if anyone had any experience of doing this recently and what their views are

Many thanks

RhysHSCC

Hi faz

Whilst I don't have experience on TOE with Santander, I deal with them on a day to day basis.

It is essentially like going through a normal mortgage application, subject to affordability, credit checks etc etc. So you will need to provide proof of income for application

Difference being is that the house involved is usually not valued, so you don't have all that to deal with which may save time.

If/when an offer is issued, your solicitor will draw up a TR1 form for your lender to complete and return to solicitor who forward to land registry. Mortgage then completes in new names.

Are you adding or removing a name just out of curiousity? Or both?

Faz_000

hi

thanks for the info

I need to remove my brother from the mortgage as he is planning to buy soon with his partner

Ideally I would add my husband on to the mortgage but he has poor credit history so Im going to try and just put in my name only

my current salary is £26,383 plus £1630 child benefit - I have 2 kids but no childcare costs and at the time of application will hopefully have zero credit card balance.

RhysHSCC

Hiya

You can get an idea of affordability by using their online affordability calculator. Impossible to say just on your salary as we don't know a mortgage size to compare it to.

That's where I would start, because if it does fail affordability on your income alone, then it will be tricky to get your brother off the mortgage as the lender won't allow it. this is all assuming it's a residential property and not BTL though. If it is BTL, then it should be a lot easier as its not subject to full affordability checks (unless it's a regulated BTL)

Faz_000

its a residential mortgage and the amount needed is 119k whcih is about 4.3x income I think so not sure?

Im tempted to just go through a broker and let them do it for me and just go for a new mortgage with new lender as Im scared about doing it on my own direct with the lender! current mortgage has 16 yrs left - I am thinking maybe getting a new mortgage with new lender for 119k over 20 year term may be more 'affordable' ?

current fix ends 2/8/16 - when can I engage a broker if I go down that route? and perhaps more importantly when is the latest I should engage a broker in order to have mortgage in place by 3/8/16? how long does it all take?

thanks again!

RhysHSCC

If you decide to go down that route, you could look to start the process 2-3 months before its due to end. If you do a remortgage usually the new lender will allow you to use their solicitors for free as part of the deal, however if you are including a TOE in that then you will more than likely have to cover the cost of this yourself

Faz_000

ok thank you for that - how much would I looking at paying for fees do you think If I did a remortgage with a new lender and included TOE within that?

RhysHSCC

Difficult to say, will depend on the solicitor really.

caprikid1

I did a Transfer of Equity with Santander about 6 months ago.


I think it cost me £1000 in Fees from Santander and the Solicitors although I think the legal fees were heavy. It seemed to be quite a long process on the phone with Santander even though my LTV was about 30% and loan about 1.5 times.


As has been stated essentially a full mortgage application.