Assumption of Mortgage

Taking over a mortgage seems to be a reasonably common practice in the US and I can find references to it in the UK.

I've known some cases here in Ireland where separating/divorcing couples have been able to transfer mortgage into one name.

Whilst it may not be the norm here, are there any legal restrictions why a mortgage cannot be assumed?

There is generally no need for an unrelated person to take over a mortgage. They simply take out a new mortgage to buy the house and the old mortgage is paid off by the seller.

In Ireland there are no penalties if a borrower wants to repay a mortgage early and most of our mortgages are variable rate mortgages. In other countries, it might make sense to take over a mortgage if the rate was fixed.

I presume that in countries like Switzerland, where the mortgage is attached to the property, the lender would have to approve the buyer of the house.

Where joint owners want to separate in Ireland, either can take out a new mortgage with another institution to redeem the joint mortgage. However, I think that the lenders are a bit more flexible with their limits to facilitate the separation. In particular, they will sometimes allow a tracker mortgage to be kept.

Thanks Brendan, the big question in my mind was if there was any legal restrictions to prevent it.

The institution involved may or may not play ball, but I wanted to know my ground. I don't get the impression they are the sharpest knives in the drawer.

There are no legal restrictions, but if the lender agrees, they will have to comply with the Central Bank's lending guidelines and the Consumer Protection Code. If your earnings were not sufficient, they could not lend you the money.



It's possible that in practice, they issue you with a new mortgage, rather than take her name of the joint mortgage.

Brendan

they will have to comply with the Central Bank's lending guidelines and the Consumer Protection Code

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Ha! Forgive me but this particular crowd were allowed get away with that!