Removing Mum when I remortgage

Tashou

Hi,

I'm looking for some advice. When I bought my property initially, I had to add my mother as a joint applicant in order to have my mortgage application accepted. At the time I was on a much lower salary and she was in full time employment, so it worked. She never actually had to pay any instalments all payments are made soley by me.

However now my mother is no longer in fultime employment, but I earn 15k more than I did before. Also the value of the property has gone up by over 100k so the LTV would be alot better this time around.

My fix term is up in 6 month so I want to remortage when the time comes, but remove her as the second applicant as she is no longer working, so she doesn't really need to be on there anymore. I plan to stay with the same lender.

I want to know will removing her make my chances of being accepted for a re-mortgage less likely? As I'm staying with the same lender I have read that they don't do the credit checks again. We both bank with the very same lender too, so do I even bother removing her at all?

Any advice would be much appreciated.

Thanks

mrginge

You'll be reassessed as a sole applicant and will need to pass affordability.

TrickyDicky101

What's the size of the mortgage? There may be SDLT implications.

Does your Mum live in the property? If not there may well be CGT implications.

Thrugelmir

Does your mother live with you?

Tashou

Hi,

No she doesn't live with me, she has her own property which she has paid the mortgage on already.

By the time I come to remortgage there will be 190k left to pay.

ACG

You would need to check the lenders affordability calculator.
If that passes, you can call up the lender (or a new lender) and ask them to remortgage solely in your name.

They will credit check you, they will assess your affordability and they will treat it like a new application.

Assuming you pass that, the offer will get issued to the solicitors and although most remortgages include free legals, you will have to pay for a transfer of equity (usually around £300-500).

Then mum gets taken off and you become the sole owner.

It should be as simple as that assuming you fit the lenders criteria etc but sods law it wont be now that I have said that.

[Deleted User]

ACG can I ask please, is the transfer of Equity cost (£300-£500 you say) a total or do both parties have to pay something, what is the process? As i'm hoping to remove my ex and remortgage myself, as he wants to buy and I want the house in my name and not have to worry about anything in the future. I was hoping he'd agree to split the cost of the transfer of equity though as it'll benefit us both.
Thanks.

Tashou

@Dalo Won't it be more complicated than that for you. Does your ex pay anything to the mortgage now (or has he ever) won't you need to also give him some money back?

[Deleted User]

Tashou wrote: »

@Dalo Won't it be more complicated than that for you. Does your ex pay anything to the mortgage now (or has he ever) won't you need to also give him some money back?

He's already been paid off, luckily I had savings and we came to an amicable agreement, I've been paying the mortgage on my own for 12 months. So hopefully it's not too complicated :T

getmore4less

Tashou wrote: »

.....
Also the value of the property has gone up by over 100k....

.

Tashou wrote: »

Hi,

No she doesn't live with me, she has her own property which she has paid the mortgage on already.

By the time I come to remortgage there will be 190k left to pay.

I hope you took advice on setting up as Tenants in common to avoid the CGT bill.

if not there will need to be a bill based on the £50k share of the increase in value.

Tashou

@getmore yes we did have a tennants in common agreement when the property was purchased so I think we should be ok on that front.