Replacing Ex on Mortgage

Smiley0120

New Member
Messages
6
Hi there

I have a house I bought with married partner and it's in small amount of positive equity. Now divorced Partner wants off mortgage and I want to replace with my brother.

The ex wants nothing out of this other than to be clear of the mortgage. Does my brother have to pay anything to do this or does he need to go through the process of applying for mortgage (so, credit check, employment etc?)

Thanks so much in advance
 

elcato

Moderator
Messages
3,693
How is your brother funding the buy ? I presume he doesn't need a mortgage but you will so it will be a thorough check. Don't suppose he could out the whole house and effectively have you pay him the mortgage ?
 

Smiley0120

New Member
Messages
6
So, not sure if I was clear from first post, my apologies.

I'm on the mortgage too, and can currently pay the whole amount myself. My ex-partner does not contribute to mortgage anymore. However, I believe my affordability according to the bank will mean that they won't allow me to take over the mortgage as I don't have the required amount of "affordability".

Can my brother replace my ex on the mortgage? Effectively nothing changes - I keep paying the mortgage - however, obviously my brother will then be liable if I ever don't pay. Which, obviously, I don't intend on not paying the mortgage.
 

elcato

Moderator
Messages
3,693
This kind of thing is common nowadays so banks may be open to some flexibility. They may allow your brother to be a guarantor but that would come to all the usual checks for him. Have you asked the bank ? As you have paid all to date it should be clear to them that you are the main person but any changes would need your ex's consent which you appear to have.
 

Smiley0120

New Member
Messages
6
My brother reached out to me today about it, and I haven't gotten on to the bank yet. I just booked a conversation with my banks mortgage section for Friday so I'm hoping it could go well. I was firstly trying to find out if it's even feasible. I've never missed a payment, and they can see where the money is coming from, so fingers crossed it could work out!

Thank you so much for the advice
 

Monbretia

Registered User
Messages
2,103
Yes if you are switching to a joint mortgage with your brother because you don't qualify on your own then his income/outgoings/credit check etc will all need to be done, he is effectively applying for a mortgage as though he was buying a new house.
 

Thirsty

Registered User
Messages
3,644
It would be advisable to have a conversation with your brother about an exit strategy and better still draw it up into a signed agreement.
 

Brendan Burgess

Founder
Messages
45,762
Hi Smiley

I was surprised that there was no up to date Key Post on the topic, so I have written a new one here.

 

Smiley0120

New Member
Messages
6
Oh sorry, one more thing. I have a tracker mortgage - and I don't want to lose out on that. Do you know if I would lose the mortgage terms and conditions for tracker if I went ahead with this? I can, of course, ask on Friday, I just wanted to see if anyone knew
 

Brendan Burgess

Founder
Messages
45,762
Which lender?

But trackers are no longer as valuable as they were.
How much is your mortgage balance today?
How many years remaining?
What is the margin?

It's possible that the lender might allow you buy out your ex on condition of getting rid of the tracker, whereas they might not otherwise give a mortgage to do it.

Brendan
 

Smiley0120

New Member
Messages
6
It would be advisable to have a conversation with your brother about an exit strategy and better still draw it up into a signed agreement.
Yes, definitely planning to do this for sure. I don't want him to run into issues, or for it to cause issues for our relationship
 

Ndiddy

Registered User
Messages
190
also if your brother does not have other property, it will nullify him as a FTB( and any tax benefits, grants, etc) if he got his own
 

Smiley0120

New Member
Messages
6
Which lender?

But trackers are no longer as valuable as they were.
How much is your mortgage balance today?
How many years remaining?
What is the margin?

It's possible that the lender might allow you buy out your ex on condition of getting rid of the tracker, whereas they might not otherwise give a mortgage to do it.

Brendan
Lender: BOI
Remaining: 220k
Years remaining: 20years

I can't afford to buy him out, and I don't have affordability in the eyes of the bank to take on the whole mortgage myself. Even though I have been paying it and never missed a payment.
 

elcato

Moderator
Messages
3,693
Do not agree or sign anything on friday with the bank. If they exert any pressure just tell them you need time to get advice.
 

Brendan Burgess

Founder
Messages
45,762
Do not agree or sign anything on friday with the bank. If they exert any pressure just tell them you need time to get advice.

With respect, this is completely unnecessary and likely to make the OP unnecessarily nervous.

The bank does not put people who meet them to discuss their options under pressure and try to trick them into signing things without advice.

Brendan
 

Thirsty

Registered User
Messages
3,644
@Brendan Burgess - many people find such meetings stressful and don't fully take in what is being said; consequently end up agreeing or making commitments they can't meet. Taking notes, asking for time to consider options and talking things over outside the meeting before signing anything is all good advice.
 
Top