Joint mortgage application - house deeds in one name.

jasper101

Can anybody tell me if it's compulsary that the house deeds be in joint names when a joint mortgage application is made? My fiance and I have a joint mortgage on our present property with HSBC. The house, however, is in the sole name of my partner. This wasn't a problem for HSBC who asked us about it at the time of taking out the mortgage some years ago.

We are now remortgaging through the Ipswich BS who say we have to have the house in joint names to have a joint mortgage. When I asked them to clarify why, they were rather vague, saying at first that it was the law, then later that it was simply their policy and if we didn't do it, it would invaildate our application.

I am dubious as to whether they are just trying to get an extra £200 quid out of me. Can anybody tell me the facts about this please? Thank you.

lisyloo

It is normal for lenders to want the deed in the same names as the mortgage.
It's not a legal requirement it's just that it makes it less risky for them if you default.
As far as I know this is quite normal.

Have you looked at re-mortgaging with HSBC?

Bossyboots

You say you started your mortgage some years ago. That is why you managed to do it the way you did. It is normal practice now for the mortgage document to reflect the names on the title deeds.

I cannot quite work out what benefit it is to them as even if you default, they will simply expect the property to be sold and you and your fiance will still be jointly liable for any balance, for instance if there is negative equity.

jasper101

Thanks for both replies above. That helps.
I had looked at remortgaging with the HSBC but thier rate was 5.75% and charged fees. I fancied the offset mortgage but couldn't really see what advantage it was going to be as I had heard that to benefit from one of these you had best had at least £2500 in your account every day. Like most people our account is high in funds on payday, dimishing rapidly with the payment of the household bills etc throughout the month.
The Ipswich had a 5.25% rate fixed for two years, didn't charge any fees, and there was no tie-in period after the 2 years. Seemed like a good option.

mountainofdebt

Personally I wouldn't want my name on a debt that related to something that I was going to fight to get a share of if something went pear-shaped.

(My parents had a joint mortgage where the deeds were in my father's sole name and my mum had a devil's own job to a share of the property because of this)

Sorry to sound so negative but horrible things do happen in life!

Debt_Free_Chick

The loan is secured on the property. So if your name is on the loan, but not the property, then arguably the property can not be repossessed if you default. In practice, if you default, then your partner would be pursued for the full debt. That said, it makes sense for the deeds to reflect the mortgage.

HTH