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Mortgage Advice - Removing a name from a joint application?

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Hey, I am looking to take a lunge and jump on the property ladder in the next few months. To be accepted for a higher mortgage, by combining two salaries, I am considering doing a joint applic… Read More
MajesticUnicorn Avatar
6m, 3d agoPosted 6 months, 3 days ago
Hey,

I am looking to take a lunge and jump on the property ladder in the next few months.

To be accepted for a higher mortgage, by combining two salaries, I am considering doing a joint application with my sister but I would be paying it off on my own.

After a few years, would it be possible to remove her off the mortgage? Is it an easy process? Any tips or advice on the actual process?

Any help would be hugely appreciated :)
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MajesticUnicorn Avatar
6m, 3d agoPosted 6 months, 3 days ago
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MajesticUnicorn

Hey,
I am looking to take a lunge and jump on the property ladder in the next few months.
To be accepted for a higher mortgage, by combining two salaries, I am considering doing a joint application with my sister but I would be paying it off on my own.
After a few years, would it be possible to remove her off the mortgage? Is it an easy process? Any tips or advice on the actual process?
Any help would be hugely appreciated :)

Just get a mortgage with a short term such as 2 years in both of your names. And repeat until you can afford solo.

At the point you next remortgage apply for one solo (while also legally changing ownership of the property to yours alone - ask your solicitor for a rough quote).

As people have already said go see a broker, the majority offer free advice and will also likely find you the best products to choose from.

Edited By: delusion on Dec 21, 2016 10:07

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(17) Jump to unreadPost an answer
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#1
Have you spoken to a mortgage advisor? If not id definitely see one! We got our first mortgage 18 months ago and our advisor sorted everything for us so we got the best options/deals. To help house insurance etc we were better of in a fixed mortgage for 2 years do cant change anything till after that time! Depending on your situation you might have loads of offers accepted or only a few to chose from, because of our age we only hot accepted for 3 even though its only a small mortgage and we had a big deposit!
#2
im no expert but i think when u take a name off a mortgage they then reassess your eligibility to pay it back on your own.
#3
I'm afraid this is fraught with problems. Your sister would be legally liable for payments and entitled to a half share in the property. You'd need to buy her out when removing her name from the mortgage, not a difficult process but you'd probably use a solicitor. Consider having your sister as a lodger and ask if they will take her rent into account instead.
#4
copycatuk
im no expert but i think when u take a name off a mortgage they then reassess your eligibility to pay it back on your own.

Yeah, that seems to be what I've understood as well from Googling it.

If I can prove that I've been paying it off comfortably on my own, I'm hoping that would make me eligible to have the mortgage solely under my name
#5
Get a trustee deal on ur house where 100% of the capital is in ur name should u sell. But u still hav to show u can pay the mortgage urself when u want ur sisters name of. Straight forward process, reapplying for mortgage on ur name and transferring papers into ur name using solicitor when ur ready.
#6
I would not advise this. Speak to a solicitor and mortgage broker.
As others have said, your sister would partly own the property. There are also tax implications when she removes her name as the inland revenue would consider that she has sold the property to you. She would also have to pay an extra 3% stamp duty if she buys her own home and her name is still on your deed as it would be treated as a second home.
#7
Joint ownership in equal shares form initially, then amend it down the road, not that hard at all really should cost you less than £200.
#8
Copycat is correct. When you applied to remove your sister from the Mortgage they would review your financial information to make sure you could afford it on your own using the same eligibility criteria you would be subject to if you were buying by yourself now.

Worst case scenario is they say no and you sister is then stuck on your mortgage for potentially years to come which will also affect her ability to get a mortgage in the future aswell if she is still named on yours.
#9
If she removed her name from mortgage, then the deeds (or land registry) would need to be changed to (at cost). Works other way to if you add a name to mortgage.
#10
I agree, company may ask questions if your sister is not living at the address too. If you can't afford the mortgage now and you are not expecting a pay rise etc when u come to remove, she will be stuck in the mortgage
#11
We put mum on sons mortgage recently... We did it as tenants in common with her owning the minimum 1% share... This should stop any capital gains tax issues when it goes 100% into his name down the road as it would class as a second home for her.
#12
Rich069
If she removed her name from mortgage, then the deeds (or land registry) would need to be changed to (at cost). Works other way to if you add a name to mortgage.

I'm not worried about having to pay a fee to remove her, just don't want this to hinder her chances of getting a mortgage in the future and/or the extra duty stamp when she decides to buy a property.

A lot of mixed answers on the post, need to book myself in for an appointment with a mortgage adviser!
#13
You say you would be paying off the mortgage on your own.
It is a larger mortgage than you would get if you just applied on your own.
So, how would you manage to pay the mortgage? Are you intending going into debt elsewhere? I just don't get it.
Believe it or not but when reputable lenders calculate the maximum mortgage you could afford. they do so on the basis that you will also have to lead a reasonable life-style. They take a risk when lending you money. Why try and beat the system? Just simply find your maximum mortgage reputable lenders are prepared to lend you and then look for property within your price range.
#14
Quite often people would pay more in rent... In our case my son pays it on his own.. He doesn't have a lot of spare money but it will get easier over time and is well worth it in the long run.. Think most struggle at first when they buy a place, we certainly did!
#15
MajesticUnicorn

Hey,
I am looking to take a lunge and jump on the property ladder in the next few months.
To be accepted for a higher mortgage, by combining two salaries, I am considering doing a joint application with my sister but I would be paying it off on my own.
After a few years, would it be possible to remove her off the mortgage? Is it an easy process? Any tips or advice on the actual process?
Any help would be hugely appreciated :)

Just get a mortgage with a short term such as 2 years in both of your names. And repeat until you can afford solo.

At the point you next remortgage apply for one solo (while also legally changing ownership of the property to yours alone - ask your solicitor for a rough quote).

As people have already said go see a broker, the majority offer free advice and will also likely find you the best products to choose from.

Edited By: delusion on Dec 21, 2016 10:07
#16
tardytortoise
You say you would be paying off the mortgage on your own.
It is a larger mortgage than you would get if you just applied on your own.
So, how would you manage to pay the mortgage? Are you intending going into debt elsewhere? I just don't get it.
Believe it or not but when reputable lenders calculate the maximum mortgage you could afford. they do so on the basis that you will also have to lead a reasonable life-style. They take a risk when lending you money. Why try and beat the system? Just simply find your maximum mortgage reputable lenders are prepared to lend you and then look for property within your price range.

Because they don't take into account what you can afford. I was in exactly this situation. I had over a 55% deposit for my house and had just short of 3 years worth of proof of income but as I had a zero guaranteed income they would lend me virtually nothing. So I ended up getting my brother on the application just to fund it. 36 months later it was all paid.

Since the 2008 crash it's been over regulated and all common sense had been lost. I don't qualify for a normal mortgage due to no guaranteed income, but also don't qualify for a self employed one as I'm not. Most were automatically rejected. Even the brokers failed. The guy from N&P said he would be happy to lend me the money himself (joke, if he had it) based on what I presented but they said no.

Current house was bought for cash from the auction. 28 days for completion. Happy days. :)

Now I'm stuck with a fair amount of cash sitting about (earning virtually nothing) but don't have enough to buy another house outright (well not one that I want) and even through I have a house that is 100% mortgage free they won't remortgage it to a decent level as I have zero guaranteed income!

So I have all but given up and set my goals at early retirement instead.
#17
GAVINLEWISHUKD
tardytortoise
You say you would be paying off the mortgage on your own.
It is a larger mortgage than you would get if you just applied on your own.
So, how would you manage to pay the mortgage? Are you intending going into debt elsewhere? I just don't get it.
Believe it or not but when reputable lenders calculate the maximum mortgage you could afford. they do so on the basis that you will also have to lead a reasonable life-style. They take a risk when lending you money. Why try and beat the system? Just simply find your maximum mortgage reputable lenders are prepared to lend you and then look for property within your price range.
Because they don't take into account what you can afford. I was in exactly this situation. I had over a 55% deposit for my house and had just short of 3 years worth of proof of income but as I had a zero guaranteed income they would lend me virtually nothing. So I ended up getting my brother on the application just to fund it. 36 months later it was all paid.
Since the 2008 crash it's been over regulated and all common sense had been lost. I don't qualify for a normal mortgage due to no guaranteed income, but also don't qualify for a self employed one as I'm not. Most were automatically rejected. Even the brokers failed. The guy from N&P said he would be happy to lend me the money himself (joke, if he had it) based on what I presented but they said no.
Current house was bought for cash from the auction. 28 days for completion. Happy days. :)
Now I'm stuck with a fair amount of cash sitting about (earning virtually nothing) but don't have enough to buy another house outright (well not one that I want) and even through I have a house that is 100% mortgage free they won't remortgage it to a decent level as I have zero guaranteed income!
So I have all but given up and set my goals at early retirement instead.

It is all about risk and the management of it. Some will argue that since the financial crash the pendulum has swung far too much the other way. Others will say the correction is necessary to prevent financial institutions over reaching themselves and saddling themselves with debts. In the States, the property market crashed through the floor and there were lots of bargains to be had. In the UK, there was no real crash in terms of the domestic property market values.
Having zero guaranteed income is a real bummer and so difficult to overcome in the current climate, so I do sympathise with people in this situation.

My own view though, for what it is worth, is that the correction was and is necessary. If anything, I would much prefer it if people could not borrow unsecured loans as much as they can at the moment.

If I read this timely report correctly, there are more mortgages than there have been for a long time.
https://www.fca.org.uk/firms/mortgage-lending-statistics


Edited By: tardytortoise on Dec 21, 2016 11:36

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