Removing names from house ownership

2004nsnazir

Hi I have a question regarding removing a name off a property.
For example if there are 2 people who brought a house and had a mortgage how easy would It be for 1 person to remove their name from the house/mortgage?


Will the person who's name has come off be able to buy another house?


Are there any costs associated with removing names? Would you recommend it?


Thanks in advance

MortgageMamma

Hello Nazir

The way to remove names depends on your circumstances.

If your lender or a new lender deem the person who is remaining on the mortgage can afford to keep the mortgage by themselves the other parties name can come off

If they can't it can get complicated. There are ways to do it but it usually involves a guarantor or adding another party to the mortgage

If the person who is having their name removed wants money to come off the mortgage that needs to be factored in too

Even if the person coming off just wants to walk away and have the shackles removed so they can buy another house, its not guaranteed to happen as you are jointly and severally liable for the FULL LOAN. So if one of you doesn't pay, the other one gets lumbered with the full debt as well.

The best way to proceed here is to speak to an experience mortgage adviser, a whole of market one not your bank and get them to calculate if its possible to remove one party. The broker will look at all lenders so you have a better chance of achieving your objectives.

Hope this helps

MM