Government Benefits and Remortgaging

Posted on 10 February 2011 by emma cregan


I want to try and remortgage as my payments are too high, but I'm on benefits. I want to add my new partner on it.

Emma,

Before you consider a remortgage or adding your new partner to the mortgage I recommend that you speak to your existing Lender. If you have been making your mortgage payments so far they may well have a choice of mortgage products with lower rates for you to consider, if you have been struggling with the mortgage payments then you may be able to come to an arrangement to lower your payments. In the latter case you should check with them whether or not this will be recorded on your credit record as it would adversely affect any other credit/mortgage applications if it is.

Adding your new partner to the mortgage is an option and Lender's would look to their income to cover the whole mortgage debt, taking into account any existing credit commitments. You need to think carefully before doing this and I would recommend you get independent legal advice because you would in effect be selling part of your home to them. If you look back over the enquiries on this website you will see we get a high number of people asking who has what rights/responsibilities once they have gone separate ways.

I recommend that you speak to your existing Lender and then contact a local independent mortgage adviser to see if they are able to obtain a better deal for you.

Peter

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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