After a split, is it possible to pass a joint mortgage over to just one of the parties?

Posted on 10 November 2007

A friend of mine has just split up with her boyfriend and they are going to sell the property. They have just bought a new mortgage deal and are tied in for a fixed period. He would like to continue the mortgage by buying a new property just in his name. Is it possible to pass the mortgage over to just one of the parties involved or will they need to pay the early repayment fee and let him start a new mortgage? I've advised her to speak to her mortgage advisor, but other than that I'm not sure what to say. Can you help please?

Chris

Hi Chris,

Yes you have absolutely the right idea.  Moving a mortgage to a new property is called 'Porting' it.  Whether this is allowed for one of the applicants when not moving together with the other one, is entirely up to the lender.  Sometimes they like to make porting rules as difficult as possible, so, as you so rightly say, they make the money from the Early Repayment Charges.  Your friend or the ex-boyfriend can find this out very easily by just telephoning the lender and asking them to specify their terms and conditions.

The ex-boyfriend may be allowed to port it as long as your friend has given her permission: she can just write a brief letter to the lender saying that she waives all rights that she might have had, to use that mortgage herself in the next few year.

The lender will have to make sure that the ex-boyfriend can afford the mortgage on his own, so he will go through the credit-scoring and payslip process again with them, which won't involve her, but after that he should be able to move it over.

If they don't let him port it, even with a letter from her, you should really challenge the lender on whether they are 'Treating Customers Fairly'.  Under TCF regulations, lenders have to be genuinely fair with any rules they make, or the Financial Services Authority will have them.

Best of luck, and if you have time, I would be interested in knowing how this one turns out.

Katie

Category: Separation or Divorce

 

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