Transfer mortgage to brother?

Hasslehogg

Hi guys

i am wondering if anyone can help me please.

I have 2 properties with mortgages in my name, 1 my main residence and the 2nd is with RBS and my brother and his family live in it. I want to somehow transfer everything to do with the 2nd property to my brother, deeds, mortgage, debt etc without my brother having to buy the house off with me a deposit as he doesnt have a deposit.

i am not looking to make any profit off this, currently he pays the mortgage each month and i just want him to have it in his name, is there anyway this can be done please?

thanks in advance

glentoran99

He will need to get a new mortage in his own name, you wont be able to transfer debt,

AnotherJoe

Hasslehogg wrote: »

Hi guys

i am wondering if anyone can help me please.

I have 2 properties with mortgages in my name, 1 my main residence and the 2nd is with RBS and my brother and his family live in it. I want to somehow transfer everything to do with the 2nd property to my brother, deeds, mortgage, debt etc without my brother having to buy the house off with me a deposit as he doesnt have a deposit.

i am not looking to make any profit off this, currently he pays the mortgage each month and i just want him to have it in his name, is there anyway this can be done please?

Not as you've stated it, no, but read on.

If you think about it, a mortage is a loan so you can't just transfer that to anyone, the lender wants to be sure whoever has the mortgage can pay it off! So he will need to apply for a mortgage in his own right,

You'll have to wait until either the mortgage is paid off, or the ousts anding amount is low enough he can get a mortage in his own right.

Unless ...... you say he hasn't got a deposit, but as you seem willing to give him the whole thing, there is such a thing as a gifted deposit. Say for example the house is worth £100k and the mortgage is £70k. If you are giving him the house, then if you can find a lender who will accept a gifted deposit, then the £30k equity will do as the deposit. You've "gifted" it.

So, go see a mortgage broker with your brother.

amnblog

If your brother meets criteria for a mortgage you can do this without him putting cash in.

Speak to a good broker.

minimike2

Careful not to confuse a gifted deposit with transaction at undervalue - They are very different. A gifted deposit involves you giving someone the cash to put into the purchase. Transaction at undervalue is allowing them to buy the property below market value, with that difference acting as the deposit for mortgage purposes - Beware as some lenders still require a cash deposit as well in this scenario. A broker will certainly be a good option here.

Also think about the funding of fees - Solicitors, SDLT etc.

Why was the mortgage on this property in your name and not his?

Hasslehogg

thanks for the replies guys, appreciated