Removing ex-partner from mortgage

Kayleigh19

Hello,

Myself and my (ex) partner took out a mortgage in October last year, we purchased the house from my Mother using a gifted deposit. House value £260k and a lent £200k.

I now need to remove him off the mortgage, I know that I will not pass affordability checks to keep the mortgage on my own. I'm thinking of adding my Brother to the mortgage but he would like to know how it would affect him in obtaining his own mortgage in the future. I have also wondered whether I could have him a a Guarantor instead? I've read mixed information on how being a Guarantor on someone's mortgage will affect them in terms of obtaining future credit?

I also wonder if the fact I have £60k equity in the house would somehow go in my favour?

Any help would be appreciated at this confusing time!

glosoli

If he was to obtain his own mortgage in future then the full mortgage payment for your mortgage would have to be included within his expendture, no doubt decreasing the amount he could borrow. He would also lose access to first time buyer schemes, such as the Help to Buy ISA and the equity scheme. He would also be subject to higher rate stamp duty on his own house purchase, and possibly capital gains tax should the property increase in value. In conclusion it is not something he should consider lightly.

In terms of guarantor mortgages, I don't actually know if any exist now but I may be wrong. Having £60,000 equity won't really mean anything either as you have to demonstrate affordability for the mortgage outstanding.

Kayleigh19

Thanks for your response. My Brother has two buy to let properties already so unsure how that would affect things either!

I have spoken to my mortgage provider and they do offer Guarantor mortgages, I suppose next step is to book an appointment with them and discuss whether this is an option.

I am reluctant to sell the property but may have to be something that I need to think about!

Thanks again

sammyjammy

Is £260k the value now or the value in October?

Neutrinno

As someone else has said; he'd be liable for an additional 3% stamp duty when he buys his own resi property, which can make things very costly. He may also find it much harder to obtain a mortgage with another residential mortgage to his name, even as a guarantor.

kingstreet

A guarantor is just someone named on the mortgage but not on the deeds. The end result from their POV is exactly the same in terms of liability and impact on their own borrowing ability.

Your equity makes little difference. It's affordability that's king.

Kayleigh19

It was valued by the mortgage company at 260k in October I imagine it has since risen a little due to carrying out some work in the house.

Thanks for the advice- I was unsure whether being Guarantor would impact his ability to obtain future credit unless I defaulted on payments.