Sole to joint change after remortgage

Thrugelmir

As the sole borrower you will need to go through the standard affordability checks etc. No reason why the existing mortgage product will not continue.

metal675

BoGoF wrote: »

Can you afford the mortgage in your own name?

It would in all likelihood be a full, sole application. There is no point making a joint remortgage application now on a fixed rate if that includes early redemption penalties. These would be triggered if you go joint to sole.

Yes, I can afford in sole name. But the bank would not give it as the title has joint name.

metal675

davidmcn wrote: »

You might be better to put up with the SVR for a while (unless you can find a penalty-free product).

I did look at that option but the difference between SVR and the fix is over 3 %


My assumption was that since the title would have changed to sole and since the other person has consented to transfer both title and mortgage it would be just administrative process.



I wasnt sure of any penalties.

Thrugelmir

metal675 wrote: »

My assumption was that since the title would have changed to sole and since the other person has consented to transfer both title and mortgage it would be just administrative process.

Legalities will need to be performed to transfer the equity in the property. Your respective solicitors will need to draft up a Financial Consent Order as part of the divorce process.

BoGoF

I'm afraid your assumption is incorrect. You are just going to have to accept the SVR until title and sole mortgage can be dealt with at same time.

Even if you think you can afford it sole, there is no guarantee the lender will agree.

metal675

Thanks.


Does that mean paying SVR for 6 months or longer is better off than an early payment charge?


The sole eligibility is not an issue as it has been reviewed and confirmed by advisors.

BoGoF

Early repayment charge after 6 months likely to be in the thousands, usually a % of sum borrowed depending on term.

metal675

hi,


thanks. So I need to decide holding off on SVR for few months and then changing to a sole mortgage vs remortgaging now.


Based on numbers, it seems the former is a better option.

getmore4less

Can you buy out the OH now and have it included in the financials of the divorce.

kingstreet

You should consider a remortgage (new mortgage with new lender to repay the current joint mortgage) in addition to a customer retention product from your existing lender.

The transfer of equity you are trying to achieve is often easier and cheaper during the process of remortgaging, not doing a customer retention product.

Either way, if you are determined to avoid SVR all you can aim for is an ERC-free product (such as a BOE base rate tracker which can be offered without penalties for early repayment).