Remortgage in a single.name

Bahiabum

Hello All,
My partner and I purchased our house for cash 7 months ago in joint ownership.. We want to set up a mortgage to carry out improvements. We appplied joinly but were refused as I have outstanding CCJ's. My partner applied for a mortgage in her sole name but was told that we had to transfer the property into her sole name in order to do this. This doesn't seem correct
Is this really necessary? All we want to do is raise funds, my partner is more than able to pass the eligibility and affordability tests. The property value is £350K the loan amount is £50K the lender is Nationwide.
Can anyone help please?

Many thanks

muhandis

If I’ve understood correctly, there are 2 names on the title deed and you want only 1 of them on the mortgage. Afaik, most lenders including NW do not allow that.

I think HSBC is the only one that does. However, whether they will lend to your particular circumstances is definitely a question for a good broker.

aries_163

Are you sure HSBC allow it that way round?
I’d read they allowed ‘joint borrower, sole proprietor’ situations, but the OP would need ‘single borrower, joint proprietor’.
I’m not sure any lenders off that? How would they repossess the house in case of arrears, non-payment, etc.

muhandis

Yes, pretty sure unless they’ve changed policy recently. This question comes up regularly on the forum. I’m not a broker so can’t say 100%. OP should definitely contact a broker to consider their circumstances in its entirety as I don't know if there might be other HSBC implications from the CCJs even if OP isn't a borrower.

HSBC has a few additional legal steps for the non-borrower owner to sign off on to waive their rights in case of default.

aries_163 wrote: »

Are you sure HSBC allow it that way round?
I’d read they allowed ‘joint borrower, sole proprietor’ situations, but the OP would need ‘single borrower, joint proprietor’.
I’m not sure any lenders off that? How would they repossess the house in case of arrears, non-payment, etc.

davidmcn

aries_163 wrote: »

I’m not sure any lenders off that? How would they repossess the house in case of arrears, non-payment, etc.

The security would need to be signed by all owners in order to be registered, but it's possible to have the loan (and the obligation to repay the loan) in the sole name of one party. Effectively the other party is acting as a guarantor (in that they're risking the property being repossessed). Not sure which (if any) lenders offer it for residential cases though - too much risk of the non-borrower complaining about not being properly advised etc.

kingstreet

Only HSBC has (what they call) the A2 legal charge needed to allow more owners than borrowers, or sole borrower, joint proprietor if you prefer.

It's direct-only so no point taking this to a broker.

Plenty of threads on this subject on M&E.

Yes, there are many more lenders offering joint borrower, sole proprietor, or what used to be called a guarantor mortgage when I started back in the business in 1984.

foxy-stoat

Try a couple of personal loans - doesnt sound like it will be a goer.