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Original poster

Coming off my mortgage

27 replies

DozeyTwonk · 31/12/2021 14:10

Hi looking for anyone who has done this. I have mortgage with DP and I want to come off this mortgage. He will continue to pay and can afford on his income. We are not splitting up and I will continue to be a joint tenant.
I want to get another mortgage with my daughter to help her get her first house.
My lender has said it possible but I would have to move out of my home? Any ideas or advice
Thanks

OP posts:
dementedpixie · 31/12/2021 14:14

Would he not have to do a mortgage application in his own name for you to be removed? Have you spoken to the current lender about it?

MyDcAreMarvel · 31/12/2021 14:16

It’s a ridiculous idea, help her with a deposit if you can but that is all.

Idontgiveagriffindamn · 31/12/2021 14:18

You could look into a guarantor mortgage for your daughter.

LordEmsworth · 31/12/2021 14:20

Why do you want to come off the mortgage? You know you can have more than one mortgage on more than one property, right? It won't be straightforward for you to get a mortgage for a property you're not living in, but there are ways to do it.

Morechocmorechoc · 31/12/2021 14:29

Lord, she then spends 3pc extra stamp duty and loses all benefits of perm residence such as would be taxed on Amy gains when sold. This would be a terrible idea.

Surely you can help with deposit and be guarantor. You should stay on your own mortgage. For you to come off you will have to pay a break fee too.

Original poster
DozeyTwonk · 31/12/2021 14:46

I don't have a lump sum to give her for a deposit. It's really about amount she can borrow - her salary is not enough . My lender is saying it can be done i.e change of Party. DP would have to satisfy that he can afford it, we'd need a solicitor and a £95 admin fee. But I would have to move out Hmm

OP posts:
alwayswrighty · 31/12/2021 14:49

You need to speak to a broker. You should be able to get a second residential mortgage without coming off your residential.

notagainnotagain · 31/12/2021 14:50

Madness unless you are splitting up from your partner. If she can't afford a mortgage, she can't afford one.

alwayswrighty · 31/12/2021 14:50

@DozeyTwonk also the mortgage company charge £95 but a transfer of equity costs around £300 legally.

Original poster
DozeyTwonk · 31/12/2021 14:55

Thanks for your messages. I want to help her get a home and I can afford to support her for a couple of years. I will speak to a broker and see what's what

OP posts:
Idontgiveagriffindamn · 31/12/2021 14:56

@DozeyTwonk from what you’ve described your lending is saying you can’t do what you want to do.
You can do a T of E with your husband and he can take k on n the mortgage. But essentially you’d need to leave the house. You’re then free to go on another mortgage which will be subject to the rules of that mortgage provider.

bonetiredwithtwins · 31/12/2021 14:56

So you will no longer continue to pay towards the mortgage with your DP?

Idontgiveagriffindamn · 31/12/2021 14:56

Has your daughter looked into shared equity?

Hoppinggreen · 31/12/2021 14:57

Sounds like a recipe for disaster

Idontgiveagriffindamn · 31/12/2021 14:57

@DozeyTwonk

Thanks for your messages. I want to help her get a home and I can afford to support her for a couple of years. I will speak to a broker and see what's what
Remember a mortgage is for 25 plus years and not a couple. What happens if they housing market crashes and you need to stay on the mortgage / can’t sell the house?
greenlynx · 31/12/2021 15:02

So basically you were told that you could get off your mortgage if you were moving out and get a new mortgage for the new place. And that your DH can afford the current mortgage on his own.

TheHoptimist · 31/12/2021 15:06

You will still have to pay additional stamp duty as it isa second home if you are joint tenant or on the deeds. She will also not be eligible for any 1st time buyer/help to buy etc (although they are ending)

TheHoptimist · 31/12/2021 15:07

Plus you would have to pay capital gains when it is sold as it isnt your primary residence

MilduraS · 31/12/2021 15:10

If you were a joint tenant wouldn't you own the property in equal shares? I think the lender would only be able to recoup the mortgage on the 50% owned by your husband which could be where the problem lies.

alwayswrighty · 31/12/2021 15:36

Joint tenants own the property 100% - tenants in common own set percentages

BeeLady15 · 31/12/2021 17:28

If your child can’t get a mortgage by themselves it means they can’t afford a mortgage by themselves. What your proposing to do is madness from a legal point of view. It’ll really complicate things when the time comes to sell or if there’s a new partner in the mix down the line. You could remortgage your own home to give a lump sum at a later point but your DC should try to get a better income so she can actually afford the mortgage repayments. Also, I wouldn’t be departing the family home for any reason, sham or otherwise. It could put you in a very vulnerable position.

Cocomarine · 01/01/2022 16:54

Most lenders (all?!) wouldn’t touch that with a barge pole.
You have to think about what happens if the mortgage is defaulted on, and the lender wants to repossess. Your husband owes them money, but they can’t easily force a sale because there’s a court saying, “hang on, she owns the house too - and not even a part of it, all of it, jointly.” How many lenders do you think want that complication?

I actually did have a charge on my former marital home after I divorced. No longer on mortgage. I had to specifically sign to say I had a charge that was secondary to the mortgage lender - they would always get first dibs. And that was no longer a Joint Tenancy with my ex husband, but a different legal solution giving me a charge on the house.

If your daughter doesn’t earn enough, can you remortgage and release money from your own equity and gift that so that she has a large deposit and her salary is then sufficient?

Darbs76 · 01/01/2022 19:42

Absolutely don’t do it. If she can’t afford one then she can’t afford one. You’ll regret it

Kitkat151 · 01/01/2022 20:04

This will end in tears....OPs tears....I’ve seen it before

whatwouldsueheckdo · 01/01/2022 20:12

Dozey please note what previous posters have highlighted regarding additional stamp duty and also capital gains tax. This could be quite costly - you really need to understand all the implications.

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