Keep Mortgage while swapping name on Deeds

T

The Machine

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Hi all,

Several years ago I purchased a house with my brother. Only my name went on the house deeds and we have both our names on the mortgage. We have both paid the mortgage 50/50 all the way.

I am now interested in buying a house with my wife while keeping the property with my brother. I have been advised (maybe incorrectly! :)) that so long as my name is on the deeds any prospective bank will consider the full amount of the remaining mortgage as my debt. Therefore I was thinking of coming off the deeds and putting my brother onto the deeds. Would this have any advantage in terms of qualifying for a mortgage or does the bank only care about the names on the mortgage contract?

Also if we did swap names on the deed would be we be able to keep our current tracker mortgage or would we have to take out a new mortgage?

Thanks in advance for any advice!
 
It's the names on the mortgage your future mortgage provider will be interested in, while your name remains on the mortgage then you are 100% liable for that mortgage. The deeds bit is not relevant to the bank.
 
Thanks for the quick reply wbbs!

So just to clarify, even if both our names are on the mortgage, am I still 100% liable for the mortgage? Would it not be 50% liable?
 
Nope, not 50%, you are both joint and severally liable which basically means that if one can't pay the other is on the hook for the lot. Now depending on your brother's financial position etc, lets assume he is in a permanent secure job and has more than sufficient to pay his share, they may take a lower than 100% liability into account for you but hard to know unless you apply.
 
There are a few issues here.

wbbs advice is true, if you bought the property as joint tenants,which means that you are both joint and severally liable for the mortgage.

If you bought as tenants in common, then you are both only liable for half the mortgage each. You should check with your solicitor which is the case.

It is normal for couples to buy as joint tenants, but often solicitors advise people buying with their friends or siblings to buy as tenants in common

Also, you can't just change the names on the deeds of a house. It is a legal document which defines the ownership of the house, and it has a mortgage attached.

Removing your name from the deeds effectively means giving your half of the house to your brother. This is a gift and may be liable for CAT tax.

Also, the mortage means that you are not legally entitled to change the ownership of the house without paying off the mortgage, or the mortage provider agreeing to the sale. In the current climate, they will only allow your brother to own the house if he is assessed for the full mortgage.
 
Before you get your hopes up, while the joint tenants/tenants in common stuff is true, I have never seen a mortgage granted on the basis of each only liable for 50%. Mind you they may exist but in many yrs of mortgage lending I have not come across it or had any one request it, I know it certainly was not an option ever mentioned even for joint applicants other than couples.
 
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