Changing 'parent' to 'wife' on mortgage (tracker)

hpb1_1

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Hi,

This might belong under "Issues with joint mortgages" but there isn't any splitting up involved. The opposite actually, I got married. Back in 2006 I got a joint mortgage with my father, only because I wouldn't have been given one on my own. My wife & I would like the mortgage in our names now (it's fine by my father - he's not paying it!). I know there's probably a bit involved in this. My wife will probably have to be assessed for her suitability etc. There shouldn't be any issues there, she has a good job.

My concern is that we have a tracker mortgage which I obviously want to keep, above anything else. Could the request to put my wife on the mortgage give the bank cause to impose new
mortgage terms? I'm worried they could say it's effectively a new mortgage. I know banks would love to get people of trackers, so I'm a bit paranoid about saying anything at all.
If anyone knows if they can do that I would appreciate any advice
 
Why on earth does your wife want to go on the mortgage? It doesn't give her any more proprietary rights it just means that the bank can go after her as well as you should any issue occur down the line.
 
If it was me I might make some attempt to have your father removed if your income is sufficient now but only if it does not affect the tracker, just to tidy things up really. I presume he is not on the deeds?

If you want to remove him and add your wife who will require underwriting etc then you are effectively getting a new deal and I imagine the bank will indeed seize the opportunity to insist on a brand new one which would lose you the tracker.

There is no really good reason to add your wife to the mortgage unless to get your father off it you need her income to go on but obviously not worth it if loss of tracker is the result and you'd want a very cooperative bank to do it without changing the mortgage.
 
hpb1_1,

Genuine advice...never speak with your bank about this. You will lose your tracker if you try to do this. It would be madness to go down this road.

Gordon
 
Why would he lose it just be enquiring? That makes no sense, unless he insists on trying to do it the bank have no reason to change the terms of existing one.
 
If your father is on the deeds and on the mortgage, it makes sense to get him off both.

There could be complications if he dies while still on the deeds.

The bank may well be open to replacing your father with your wife. Ask them.

If they make it conditional on losing the tracker, then you should not do it.

Your father can do a side agreement with you renouncing his interest in the property.

Is there any disadvantage in putting your wife on the mortgage?

There could be. Let's say you want to move after a few years. She might qualify in her own right for a mortgage but could be held back by the fact that she already has mortgage commitments.

If you are in negative equity, then she is taking on an unnecessary liability.

Is there any advantage in putting her on the deeds? If you are in positive equity, there is to her, but not to you. Some marriages split up. Jointly owned property is a problem. If you do split up, it would be cleaner if you own the property in your own name.

Brendan
 
Why would he lose it just be enquiring? That makes no sense, unless he insists on trying to do it the bank have no reason to change the terms of existing one.

There may be other grounds for the bank to do something about the tracker. It would be imprudent to come on to their radar regarding a minor issue which has almost zero chance of being resolved.

A side agreement is the way to go.
 
There may be other grounds for the bank to do something about the tracker. It would be imprudent to come on to their radar regarding a minor issue which has almost zero chance of being resolved.

I think that you are being excessively careful.

What other reasons could there be for the bank to take away the tracker?

Depending on the lender, there is a reasonable chance that they will agree.

Brendan
 
Breach of LTV for example

I have never heard of any Irish lender take away a tracker for breach of LTV.

The only reason I have seen people lose trackers has been arrears on a buy to let. In the past, they also took them from family homes in arrears, but they are not allowed to do that under the CPC.

It's also possible that they could lose it if it's a Danske Bank mortgage which is now a buy to let.

But it doesn't appear to be either of these, so there is zero risk.

Brendan
 
I am struggling to see the upside in asking the bank about this. There is no chance that they will swap a buyer out and another in without removing the tracker. It is a waste of time and effort (in my view admittedly).
 
I am shocked that they do this, but I stand corrected.
As the OP has not yet responded to the query regarding whether his fathers name is joint owner or only on the mortgage deed
it might make it much more advantageous for the bank to swap.I also agree that i can see no benefit only extra risk to substitute
his father.
 
If it were me I would not bother with attempting the substitution but would remove the father if that was possible income wise. There is a better chance of a bank doing that as realistically it's just hit a delete button for the second name if the father is not on the deeds, much more work to add on a customer.

Secondly why should the wife go on the mortgage unless again it is an income issue if the OP would not have enough in his own name to just remove the father, no advantage to her to be on the mortgage if she doesn't need to be.

If OP has not enough income to take over the loan in his own name only then leave well enough alone.
 
OP should have father's name removed. And for the sake of his marriage, possibley, and that depends, put his wife on the deeds. Everybody then will be happy. If the bank won't play ball, do a side agreement with the father to demonstrate he never really had hand act or part in the title/repayments. This should be done with a solicitor. It could be very messy when the father dies otherwise.

Also discuss with a solicitor if the father in his will should leave his share of the house to his son, with an explaination that it really does not form part of his estate. A few bob now to a solicitor is worth sorting this out now, not later.
 
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