Title transfer

xxlily

My daughter and her boyfriend bought a property in Jun 2020 in joint names.  They got a £225K mortgage from Santander, 5% from Help to Buy and £80K from bank of Dad.  Unfortunately the relationship is on the rocks and they will probably go their separate ways.  I don't want her to give up her independence and would like her to take over the mortgage which, with my help, I know she can easily manage.  Unfortunately last year she gave up her job and set up as a self employed professional and currently only has 10 months of accounts on which Santander would never loan her the money.  I am proposing to give her money equivalent to the value of all mortgage payments until June 2025 when her fixed term finishes.  She would give this money to Santander who could hold it on an escrow account or similar such that they had first call on the money in the account which means that they would have no financial risk of default.  This would then buy her time to build a set of trading accounts that could justify the loan amount at the end of the current fixed term.  Help to buy would still get their 5% protected by the value of the house and I would take the risk of my daughter repaying me until the end of her current fixed rate term - everyone wins!  Can anyone tell me why Santander wouldn't do this, given that they have no risk and their short term profit is guaranteed?      

housebuyer143

xxlily said:

My daughter and her boyfriend bought a property in Jun 2020 in joint names.  They got a £225K mortgage from Santander, 5% from Help to Buy and £80K from bank of Dad.  Unfortunately the relationship is on the rocks and they will probably go their separate ways.  I don't want her to give up her independence and would like her to take over the mortgage which, with my help, I know she can easily manage.  Unfortunately last year she gave up her job and set up as a self employed professional and currently only has 10 months of accounts on which Santander would never loan her the money.  I am proposing to give her money equivalent to the value of all mortgage payments until June 2025 when her fixed term finishes.  She would give this money to Santander who could hold it on an escrow account or similar such that they had first call on the money in the account which means that they would have no financial risk of default.  This would then buy her time to build a set of trading accounts that could justify the loan amount at the end of the current fixed term.  Help to buy would still get their 5% protected by the value of the house and I would take the risk of my daughter repaying me until the end of her current fixed rate term - everyone wins!  Can anyone tell me why Santander wouldn't do this, given that they have no risk and their short term profit is guaranteed?      

There is no way they would do this. It's really convuluted and nothing in it for them. It's basically them giving a mortgage to someone they can't prove can afford it. Unless you are on the mortgage with her, they have no legal recourse if you didn't pay it to her. 
They are better off saying no, getting the house sold and maybe making ERCs. Or failing that they will just leave the mortgage as it is and expect payment from both parties. In both scenarios they get their money without going through with your idea. 

Can her partner not remain on the mortgage until she can qualify for the loan herself, even if they break up?