Can we do this?

Lemily14

Hi guys,

Bit of a long story but my mum recently split from her husband and they have both agreed to sign the house over to my mums name. She will struggle to pay the mortgage on her income only and has looked into the Nationwide Retirement Interest only mortgage (she really doesn’t want to have to sell her house). She phoned Nationwide and they said she couldn’t apply as the current mortgage is in both their names still, even though she said she wants to apply in just her name. She’s with Santander at the moment on their variable rate. She’s looking to renew her mortgage with Santander in her name only but stay on their variable rate (not tied into any deal) and once that’s through then move to Nationwide. My question is can she do this? Renew mortgage with Santander to get it in her name only then jump ship to Nationwide once it’s all done? Either straight away or within a month?

sammyjammy

If she attempts to move the mortgage at Santander into her name only they will consider affordability and credit check her.

Lemily14

Yeah I know they will perform a credit and affordability check but if she passes this and they give her a mortgage in her name can she then leave them and apply to Nationwide as long as she’s not tied into a deal with Santander?

MortgageMamma

Yes she can. assuming she passes affordability. Although I cannot understand why a mortgage lender would not accept an application for the RIO mortgage on the proviso a transfer of equity between your Mum and partner takes place at the same time.

This is important stuff and there is scope for it all to go wrong and delay the process/cost you money. It would be worthwhile taking some professional advice. An experienced Mortgage Adviser would be able to tell you from the off if your Mum had enough income to support the mortgage alone.

Lemily14

Yes I can’t understand why she can’t move to the RIO mortgage and at the same time change to a single applicant mortgage but they have told me this is the case. My mum is getting made redundant at the start or next year and she will be going from a £38000 salary to possibly a £14000 salary so she wants to get a mortgage in place while she’s still on the higher salary but knows she would need to change to the RIO mortgage or sell the house

Lungboy

If she knows that she's being made redundant then I think she'd have to declare it as part of any mortgage application.