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Change of ownership and Help to Buy loan
benkil
Posts: 19 Forumite
Hi,
I am separating from my partner and was just looking for some advice on the best way of dealing with the situation:
We are 12 months into our 5 year fixed. ERCs currently stand at £6k. We also have the 20% help to buy loan.
My auntie has agreed she is willing to add her name to my mortgage and my ex-partner removes her name. She is not expecting money back from the house, she is just happy for her name to be removed. My auntie is in a very good position financially so her getting a mortgage shouldnt be an issue.
My question is in regards to the help to buy loan and the ERCs.
Is it possible for me to add my auntie (not first time buyer) to the mortgage and still have the help to buy loan running as normal or would it need be settled as soon as the new mortgage is up and running?
Also is it possible to avoid the ERCs if were to stay with Halifax on the same product?
I am separating from my partner and was just looking for some advice on the best way of dealing with the situation:
We are 12 months into our 5 year fixed. ERCs currently stand at £6k. We also have the 20% help to buy loan.
My auntie has agreed she is willing to add her name to my mortgage and my ex-partner removes her name. She is not expecting money back from the house, she is just happy for her name to be removed. My auntie is in a very good position financially so her getting a mortgage shouldnt be an issue.
My question is in regards to the help to buy loan and the ERCs.
Is it possible for me to add my auntie (not first time buyer) to the mortgage and still have the help to buy loan running as normal or would it need be settled as soon as the new mortgage is up and running?
Also is it possible to avoid the ERCs if were to stay with Halifax on the same product?
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Comments
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benkil said:Hi,
I am separating from my partner and was just looking for some advice on the best way of dealing with the situation:
We are 12 months into our 5 year fixed. ERCs currently stand at £6k. We also have the 20% help to buy loan.
My auntie has agreed she is willing to add her name to my mortgage and my ex-partner removes her name. She is not expecting money back from the house, she is just happy for her name to be removed. My auntie is in a very good position financially so her getting a mortgage shouldnt be an issue.
My question is in regards to the help to buy loan and the ERCs.
Is it possible for me to add my auntie (not first time buyer) to the mortgage and still have the help to buy loan running as normal or would it need be settled as soon as the new mortgage is up and running?
Also is it possible to avoid the ERCs if were to stay with Halifax on the same product?
I'm pretty sure the H2B loan has to be repaid to remove your exs name.
If your aunt already owns a home, she may not be able to be added on as H2B loan criteria means it has to be your only home, even if she doesn't want any of it. Also there would be the higher stamp duty if she owns a home.
I'm assuming you can't afford to remortgage and repay the H2B loan, ERCs etc on your single income?
Have you read through the H2B pack you were provided with when buying it a year ago as the answers should be in it.
Mortgage started 2020, aiming to clear 31/12/2029.0 -
You can remove a party; but you cannot add another;-
https://www.myfirsthome.org.uk/iwantto/transfer-of-equity/
I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.1 -
Did you manage to get anywhere with this? I have a very similar situation?0
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