Transfer of equity

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Christieturner
Christieturner Posts: 3 Newbie
in Mortgages & endowments
Hi,

Me and my partner brought our first home together in May, but have now sadly split. We are not married.

We are tenants in common and I have a trust deed to say that if we sell, I get the money back which I put down as a deposit. She did not put any money in at all.

I am looking to do a transfer of equity and get the mortgage with nationwide solely in my name.

Unfortunately the mortgage calculator says I couldn’t afford it on my own. However I know I can.

Nationwide say that if I can prove that I have paid the mortgage on my own from my own account for 3 months they sometimes accept it.

Has anyone been through this or been accepted by proving 3 months that you can afford your property on your own? I am hoping so!!!!

All help much appreciated!

X

Comments

  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    Christieturner wrote: »

    Unfortunately the mortgage calculator says I couldn’t afford it on my own. However I know I can.

    What criteria are using to stress test your assumptions, i.e. a worst case interest rate?

    Lenders do not just base decisions on current interest rate levels. They are required to consider the impact if there was to a material change.
  • KnowledgeIsLife
    KnowledgeIsLife Posts: 71 Forumite
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    I find it hard to believe a lender will say you paid it for 3 months so that's fine as the problem is they need to prove it on paper which means they need to say you earn X amount owe X amount and if the rate was x% you could afford it and judging by that calculator that would not work unfortunately I would ask them how much you could borrow in your soul name and work with that.
  • Christieturner
    Christieturner Posts: 3 Newbie
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    They said there are ways round if, if I am show that I can afford it for 3 months on my own then they may consider it by sending to underwriters or something.

    With my earnings alone I’d only be able to borrow £140k and my mortgage is £196k. I have worked out that I can comfortable pay the mortgage on my own with a bit spare.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    Christieturner wrote: »
    With my earnings alone I’d only be able to borrow £140k and my mortgage is £196k. I have worked out that I can comfortable pay the mortgage on my own with a bit spare.

    If the lenders online calculator suggests £140k. Then you are unlikely to be granted a mortgage of £196k. Lenders have a regulatory duty to lend responsibly along with a duty of care towards their customers. You will most likely fail on affordability (in part) for the reason given in my earlier post.

    Lenders are required to stress test at 3% above the product reversion rate, i.e. the SVR at the end of the product term. The BOE is in essence ensuring that borrowers (since 2014) are prepared for the potentially worst scenario.
  • RunningKatie
    RunningKatie Posts: 21 Forumite
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    The underwriters are more likely to say no than the salespeople sitting in the bank OP. Unfortunately, as others have said, it is not so much about whether you can afford the mortgage now, or for the last three months but if you pass the stress test of a worst-case scenario. Without passing that test the underwriters are very likely to say no, even if the bank itself tries to 'persuade' them to take you on as you would be beyond the calculated risk they would be willing to take leaving them with the fees when they have to repossess ad the lengthy process to sell and recoup their money (I know this would not be the case for you right now or potentially in the future but it is how the underwriters will see you, they cannot take your personal guarantee as gospel that you will always pay) a broker may be able to help as they often have good relationships with the underwriters and know which ones may be willing to take more of a risk. Unfortunately, if £140k is the max on paper, then that is all they will lend.
    Working hard to save a giant deposit for the dream house...
    Then taking on a giant mortgage to buy the dream house...
    To then become mortgage free!! :beer:
  • Christieturner
    Christieturner Posts: 3 Newbie
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    Thanks for your help. I rung nationwide today and spoke to the mortgage representative over the phone. They seemed fairly confident if I can prove it then the underwriters are more likely to say yes than no. But I am still unsure.

    I can only hope. X
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    Christieturner wrote: »
    Thanks for your help. I rung nationwide today and spoke to the mortgage representative over the phone. They seemed fairly confident if I can prove it then the underwriters are more likely to say yes than no. But I am still unsure.

    I can only hope. X

    Online calculators are a good indication of what's possible. Don't expect a wide deviation. Three months of paying a mortgage. Means little in context of a repayment period spanning potentially over 300 months.
  • hylandr
    hylandr Posts: 2 Newbie
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    Hi, I am currently going through the same process with a Transfer of Equity after splitting with my partner and came across your post. May I ask whether you went ahead with the 3 month period and out of curiosity, whether you were successful?
    I am in a similar situation where the difference between what I could borrow and the amount of my mortgage is around £60-70k and Nationwide have asked me to pay everything for 3 months before being assessed by an underwriter. They couldn't give me any indication of whether I might be successful however they advised that this is commonly offered to people in a similar situation with some being approved for mortgage amounts above what they would in theory be eligible for

    Would be great to hear if you have completed this process yet?

    Thanks :)
  • fewcloudy
    fewcloudy Posts: 617 Forumite
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    hylandr wrote: »

    Would be great to hear if you have completed this process yet?

    Thanks :)

    hylandr, it is only 2 months since the the OP started this thread, so unlikely to have completed this process...
    Feb 2008, 20year lifetime tracker with "Sproggit and Sylvester"... 0.14% + base for 2 years, then 0.99% + base for life of mortgage...base was 5.5% in 2008...but not for long. Credit to my mortgage broker
  • hylandr
    hylandr Posts: 2 Newbie
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    Hi, just wanted to comment again to say I have now completed the process with nationwide and I was accepted for a transfer of equity to take the mortgage in my name. I had never seen anyone confirm that they had ever been successful so wanted to confirm that it worked out for me in case this gives you more reassurance that it is a process that exists!! Good luck :)
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