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  • FIRST POST
    • Christieturner
    • By Christieturner 4th Nov 18, 7:35 PM
    • 3Posts
    • 1Thanks
    Christieturner
    Transfer of equity
    • #1
    • 4th Nov 18, 7:35 PM
    Transfer of equity 4th Nov 18 at 7:35 PM
    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 couldnít 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
Page 1
    • Thrugelmir
    • By Thrugelmir 4th Nov 18, 10:18 PM
    • 62,450 Posts
    • 55,555 Thanks
    Thrugelmir
    • #2
    • 4th Nov 18, 10:18 PM
    • #2
    • 4th Nov 18, 10:18 PM

    Unfortunately the mortgage calculator says I couldnít afford it on my own. However I know I can.
    Originally posted by Christieturner
    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.
    "You get recessions, you have stock market declines. If you don't understand that's going to happen, then you're not ready, you won't do well in the markets." - Peter Lynch
    • KnowledgeIsLife
    • By KnowledgeIsLife 6th Nov 18, 4:31 AM
    • 71 Posts
    • 26 Thanks
    KnowledgeIsLife
    • #3
    • 6th Nov 18, 4:31 AM
    • #3
    • 6th Nov 18, 4:31 AM
    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
    • By Christieturner 8th Nov 18, 10:02 PM
    • 3 Posts
    • 1 Thanks
    Christieturner
    • #4
    • 8th Nov 18, 10:02 PM
    • #4
    • 8th Nov 18, 10:02 PM
    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 Iíd 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
    • By Thrugelmir 8th Nov 18, 10:55 PM
    • 62,450 Posts
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    Thrugelmir
    • #5
    • 8th Nov 18, 10:55 PM
    • #5
    • 8th Nov 18, 10:55 PM
    With my earnings alone Iíd 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.
    Originally posted by Christieturner
    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.
    "You get recessions, you have stock market declines. If you don't understand that's going to happen, then you're not ready, you won't do well in the markets." - Peter Lynch
    • RunningKatie
    • By RunningKatie 10th Nov 18, 10:21 AM
    • 17 Posts
    • 66 Thanks
    RunningKatie
    • #6
    • 10th Nov 18, 10:21 AM
    • #6
    • 10th Nov 18, 10:21 AM
    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.
    • Christieturner
    • By Christieturner 14th Nov 18, 5:08 PM
    • 3 Posts
    • 1 Thanks
    Christieturner
    • #7
    • 14th Nov 18, 5:08 PM
    • #7
    • 14th Nov 18, 5:08 PM
    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
    • By Thrugelmir 14th Nov 18, 5:58 PM
    • 62,450 Posts
    • 55,555 Thanks
    Thrugelmir
    • #8
    • 14th Nov 18, 5:58 PM
    • #8
    • 14th Nov 18, 5:58 PM
    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
    Originally posted by Christieturner
    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.
    "You get recessions, you have stock market declines. If you don't understand that's going to happen, then you're not ready, you won't do well in the markets." - Peter Lynch
    • hylandr
    • By hylandr 16th Jan 19, 10:37 AM
    • 2 Posts
    • 0 Thanks
    hylandr
    • #9
    • 16th Jan 19, 10:37 AM
    • #9
    • 16th Jan 19, 10:37 AM
    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
    • By fewcloudy 16th Jan 19, 12:00 PM
    • 274 Posts
    • 156 Thanks
    fewcloudy

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

    Thanks
    Originally posted by hylandr
    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 till it ends...
    • hylandr
    • By hylandr 5th Feb 19, 10:41 AM
    • 2 Posts
    • 0 Thanks
    hylandr
    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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