As a mortgage broker in the UK, I know that life often brings big milestones, and one of those might be deciding to add your long-term partner to your mortgage. This can be a powerful symbol of your commitment to each other, but it also has practical benefits—like improving the chances of paying off the loan. Still, it’s not just a matter of adding their name to the paperwork. You’ll need to think about the cost of adding someone to your mortgage, as it can involve fees and legal steps.

In this article, we’ll explore the details of how to add your partner to your mortgage, while also breaking down the potential costs involved. Whether you’re deepening your relationship or looking for ways to maximize your financial situation, this guide will give you the insights you need. Let’s take this journey together.

Key Takeaways:

• Legal fees and stamp duty represent the largest costs associated with adding someone to a mortgage, particularly if a significant share of equityThe difference between the value of the property and the amo... is transferred.
• Be cautious of any early repayment charges if you’re locked into a mortgage deal, as these can be quite high.
• It’s essential to consult with a mortgage broker to explore the best financial path, particularly for understanding lender-specific costs and exploring better interest rates if remortgaging.

Post Topics

How do I add my partner onto my mortgage?

Other things to consider when adding your partner to your mortgage

Joint tenants vs tenants in common

Next steps

FAQs

How do I add my partner onto my mortgage?

To start the process of adding your partner to your mortgage, you should approach your current lender, and they will conduct income, affordability, and credit checks on your partner. While this is standard, it’s essential to be aware that the cost of adding someone to your mortgage may include administrative fees, legal fees, and possible interest rate adjustments depending on the lender.

You can also approach a new lender if you’re not tied into a product with your current lender. However, remember that exit fees can be substantial if you’re mid-deal, so §1 consider the cost of adding someone to the mortgage carefully before switching lenders. The process may result in better interest rates, but ensure all associated costs are factored in before making a decision.

There is also an option for joint mortgage with sibling which you can read on our website. 

Benefits of Adding Someone to a Mortgage

There are several benefits of adding someone to a mortgage in the UK, making it a practical choice for many homeowners. One of the main benefits of adding someone to a mortgage is the ability to share monthly repayments, which can alleviate the financial load on one individual. This setup can also help secure a larger loan, as lenders consider joint income, allowing both parties to enjoy improved borrowing potential.

Additionally, a key benefit of adding someone to a mortgage is the shared ownershipA scheme where a borrower purchases a share of a property an... and responsibility, which can provide long-term financial stability and flexibility for both partners.

Things to consider when adding your partner to your mortgage 

• Equal financial responsibility: With a joint mortgage, both parties share equal financial responsibility for the loan. This applies whether the mortgage is taken with a civil partner, life partner, sibling, or friend.

•Liability in case of default: If one party defaultsMissed payments on credit accounts, which can affect a borro... on their payments, the other party remains fully liable for the entire loan. If payments are missed, both partners risk losing their home.

•Impact of poor credit scores: A joint mortgage or even a joint bank account links both parties’ financial profiles. If one partner has a poor credit score, it could negatively affect the other’s credit score. This may make it harder to remortgage or secure new loans in the future.

•Importance of financial discussions: It’s rational to discuss your financial standings and check each other’s credit history before proceeding. This ensures that adding your partner won’t have negative financial consequences for either party.

•Administrative and legal fees: Lenders may charge an administration fee for adding your partner to your mortgage, and legal advice is often required to complete the process. These costs add up, so it’s crucial to factor in the cost of adding someone to your mortgage before making the decision.

•Updating wills and legal documents: After adding a partner to your mortgage, ensure any wills or legal documents are updated. This is especially important if a civil partnership or significant life event occurs that might require further adjustments.

•Financial standing and future refinancing: The financial standing of your partner could impact the terms of your mortgage and your ability to refinance in the future. If one partner’s credit or income situation changes, it could affect mortgage approvals or refinancing opportunities down the road.

Joint tenants vs tenants in common

If you are considering on adding your partner to your mortgage, you will need to decide whether to hold the property as joint tenants or tenants in common.

Joint tenants or joint tenancy – this is the most common option for couples. Both parties have equal share in the property and is both equally and severally liable for the mortgage loan. This means if there are defaults in payments, the lender can sue either one or both people for the whole loan amount. In the event one person passes away, the property would be passed on to the other party and they wouldn’t be able to leave their part of the property to someone else in their will.

Tenants in common – generally this is used between friends or siblings who own a property together rather than a couple. How this differs from joint tenants is that the share of the property is split between the two parties, by a percentage split of their choosing (does not have to be 50% each). When the property is sold, the equity would be split between the two parties as per their percentage share. Tenants in common also has different legal implications compared to joint tenants. In the event of death of one party, their share of the property is not automatically transferred to the other person, but rather passed to the next of kin or named beneficiary.

In both instances, all tenants must be in agreement if they wish to sell the property.

Next Steps

If you are unsure of how to add your partner to your mortgage or what the best approach is, it may be easier to seek professional advice from a mortgage broker. If for any reason you are unable to add your partner onto your mortgage with your current lender, a mortgage broker can help analyse the reason and with knowledge of other lenders on the market, could potentially match you up with an alternative lender and find you a deal that is best for your own personal circumstances.

FAQ: Adding a Partner to Your Mortgage

How do I remove someone from a mortgage?

To remove someone from a mortgage, you’ll need to go through a legal process similar to adding someone. First, contact your current lender and submit a formal request. They will guide you through the necessary steps, which typically involve legal and financial assessments, such as credit checks and affordability checks.

How can I remove an ex from the mortgage without refinancing?

It’s possible to remove an ex from the mortgage without refinancing, but it must be done before the mortgage term ends. You’ll need to negotiate with your current mortgage provider and potentially undergo a transfer of equity. This process involves your ex relinquishing their share of the property. Legal advice and a credit checkA check of a borrower's credit history, which is used by mor... will be required to proceed.

What are the steps to get my name off a joint mortgage in the UK?

To remove your name from a joint mortgage:

1.Contact your current mortgage lender and express your intent.

2.Complete any forms they provide, such as application forms or consent forms.

3.The lender will process the request, which may involve an affordability assessment to ensure the remaining party can manage the payments.

4.Consult with a mortgage adviser for expert guidance through this process.

How long does it take to remove my name from a mortgage?

The timeline varies depending on the type of mortgage and the lender’s procedures. Typically, it can take around 2 weeks, but more complex cases might take longer, especially if it involves legal processes or high lender fees.

Can I remove my spouse from my mortgage?

Yes, you can remove your spouse from the mortgage by contacting your mortgage provider and following their specific process. You’ll need to show that the remaining party can afford the mortgage repayments. This may involve an affordability assessment and providing proof of income.

What is Transfer of Equity?

A transfer of equity is a legal process where one party’s ownership share in the property is transferred to another. This might happen when adding or removing someone from a mortgage. It involves legal documentation, possibly a new mortgage application, and any settlement of outstanding amounts. Solicitor details and property deedsLegal documents that prove ownership of a property. are involved.

What are the key stages of Transfer of Equity?

1.Agreement: Both parties agree on the terms of the equity transfer.

2.Payment: The incoming party may need to pay the outgoing party.

3.Legal release: The outgoing party releases their claim to the property.

4.Property title deeds: Legal documents are updated to reflect the ownership change.

5.Completion: All legal paperwork is completed with conveyancing solicitors and the local authority.

How much does it cost to transfer equity?

The cost depends on the transaction size, legal fees, and potential stamp duty. Your current mortgage lender may also charge additional fees for this process, especially if a new mortgage deal is involved. Be sure to discuss all possible costs with a mortgage broker or qualified mortgage adviser.

Do I have to pay Stamp Duty when transferring equity?

Stamp duty may be required depending on the property value and the circumstances of the transaction. For example, if the property has an outstanding mortgage or its value exceeds a certain threshold, stamp duty may apply. Consult with a legal adviser or tax professional for accurate advice.

What happens when there is a mortgage on the property during a transfer of equity?

If there’s an existing mortgage, the lender must approve the equity transfer. The incoming party may need to undergo affordability checks or credit scoring. You should be aware that this can result in additional fees, legal costs, and possibly a higher interest rate depending on the loan terms.

Is it possible to sell my home without paying Stamp Duty?

In some situations, such as if you qualify for a first-time buyer scheme or fall within specific criteria, you may avoid paying stamp duty. However, these exemptions are limited, and you should consult with a mortgage adviser or tax expert to explore your options.

What is the cost of adding someone to the mortgage?

The cost of adding someone to your mortgage varies based on lender policies. Expect administrative fees, possible legal fees, and potentially higher interest rates due to changes in credit history or income ratio. Discuss the specific fees with your mortgage provider or online mortgage broker.

Can I get a discount on Stamp Duty?

Discounts on stamp duty may be available for first-time buyers or under certain equity schemes. It’s best to consult with a mortgage adviser or legal expert to understand if you qualify for any tax relief.