Can we swap properties with my mother-in-law, without having to apply for a new mortgage?

Posted on 27 March 2015 by Kim

Can we swap properties with my mother-in-law, without having to apply for a new mortgage?

My mother in law to be has a 3 bedroom house and she wants to downsize. My fiance and I live in a 2 bedroom coach house / flat and need more space so looking to sell and buy a bigger place but can't afford a deposit or increased mortgage a month. We wanted to find out if we could exchange houses without having to apply for a new mortgage as my mother in law's house has been paid out right. We just want to swap houses but we still pay the mortgage on our old house but have mother in law's name on the paperwork etc. is this possible and how do we go about this? ,

I'm afraid that I can't see how you can do this without either yourselves or your mother-in-law having to apply to a lender for a mortgage. If you want your mother-in-law to be on the deeds of your current property, then she would have to apply for a mortgage to pay off the current loan in your name. Alternatively if you wanted to move your mortgage onto your mother-in-laws property when you move in, then you would have to apply to your lender "port" the loan onto the new property. Whichever way you decide to go, the party applying for the mortgage would have to meet the lenders standard affordability critreia or we would need to look for a lender who applies the regulators transitional rules, if you are not looking to change any of the T&C's of the current loan and keep it in your names.

If you want to go through the options available to you in more detail, then you can contact one of our consultants on 0344 346 3672 and they'll be able to give you a clearer idea of how we can help.

Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.

We recommend you seek professional advice with regard to any of these topics where appropriate.

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