Transfer of Title Subject to Mortgage

Posted on 22 December 2010 by kim kaef

My mom is considering retirement and is worried that she will not be able to afford her mortgage. She is going through some financial hardship and has already lost one of her properties. She would like to transfer the mortgage to me so that I can continue to pay the mortgage.

The house is worth about 150k and is mortgaged. I earn over 30k but have no deposit.

What is the best way to transfer this property to me?


I recommend that you both make an appointment to see your Mother's existing mortgage lender. This will give your Mother the chance to explain her current situation and explore any other options that may be available to her. It will also give you the opportunity find out what costs will be involved with a 'transfer of title subject to mortgage' and ask what the financial implications are of taking on your Mother's mortgage.

The Lender will want to make sure your Mother is not acting under duress and will want to make sure that you can afford to take on the mortgage. It might be they decide that they can add you to the mortgage as a joint borrower rather than for you to take over the whole mortgage on your own. Expect to be asked to prove your income and be honest about any existing credit or mortgage commitments you have as they will carry out a credit check too.

Both you and your Mother should seek independent legal advise before proceeding. There may be another solution whereby you can help your Mother maintain her mortgage payments whilst ensuring that any money you invest remains protected.


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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