You may decide that you want to add or remove a borrower from your mortgage, as a result of a change in your personal circumstances. This is often accompanied by a process called a transfer of equity.
A transfer of equity is a process where the ownership of part of a property is transferred, either as a gift or sold to another person. Because there is a mortgage on the property, we would require that the names on the mortgage are amended to match the ownership of the property.
This process could involve removing someone from the mortgage, adding someone or doing both at the same time. However, we’ll insist that at least one of the original mortgage holders remains on the mortgage.
If your mortgage is held on a shared ownership or shared equity scheme, or if you have a guarantor, then we won’t be able to offer you a transfer of equity. You can call us on 08000 288 288 call charges to discuss your alternative options.
If your mortgage product is coming to the end of its deal period or you are currently on our Standard Variable Rate, we have a range of new products for you to choose from. Any transfer of equity application would need to be completed exclusively to a switch.
We do charge a transfer of equity fee (see our tariff for details). You should also consider other costs such as legal fees as you’ll need a solicitor to change the ownership of the property and change the mortgage.
There may be additional costs if you need to increase your mortgage. Please look at our Borrowing More section for more information.
There are a few things to consider before adding or removing a borrower from your mortgage:
We insist that a solicitor acts in the transfer of equity. They are there to ensure that the property is correctly transferred and to protect your and our interest in the transaction. This can be a solicitor of your choice, as long as they are on our solicitor panel. You can contact us on 08000 288 288 call charges to check if your chosen solicitor meets our requirements.
Firstly, get in touch with us. We will discuss your situation to see if there are any changes we can make that will make it affordable for you, like extending the term.
In some circumstances, the courts will decide that the property needs to be transferred into a sole name. While we will act on that order and consent to the property being transferred, the mortgage will remain in joint names.
Your home may be repossessed if you do not keep up repayments on your mortgage.
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