Would you like to remove a person from a mortgage in Hull?
In the event that there has been a significant change in your personal situation and are looking to remove a person from a mortgage, our team of mortgage advisor are here to help! Know as ‘financial separation’, our team are skilled in helping them progress within this circumstance.
Throughout the years, our team have encountered a large variety of mortgage situation, some being simple and a number of them being difficult. With this in mind, it is rare that they have come across a case they haven’t dealt with once or many times before. For Specialist Mortgage Advice in Hull, our team are available 7 days a week to understand your situation and work hard in putting you in the best financial position.
Why would you want to remove a name from a mortgage?
Divorce & Separation
We have spoken to many customers who are seeking Mortgage Advice in Hull because of divorce or separation. Obviously, this will result in a significant consequence to any finances that you have built up together and can be challenging to fix.
Therefore, this needs to be at the top of your to-do list! If you leave it too long it can make the situation more stressful than it ever needs to be. This can be a time-consuming process and your mortgage lender needs to make a decision on what is going to happen because they are at risk with their financial security.
Keep in mind that your mortgage lender or building society will need to have confidence in knowing the remaining homeowner is able to keep up their mortgage payments themselves. At the end of the day, they will be going from two potential sources to rely on if payments are missed, down to one.
One factor you have to remember is that both parties need to fully agree for a name to be taken off a mortgage. In the situation where one party says no, you’ll need to take the option of court proceedings making it a costly and time-consuming experience.
Obtaining specialist mortgage advice in Hull can be a huge benefit if you are going through a challenging divorce or separation. Our team will take on the mortgage aspect of the financial separation and will aim to take as much stress away as possible.
Transferring to a Family Member or Friend
If you are looking into this option, it can be a more simple and more straightforward process, even more with the assistance of a mortgage broker in Hull.
The process works by the homeowner transferring the equity to their family member or friend. The mortgage get transferred to their name, with the equity remaining inside the property.
This does result in the new homeowner needing to prove that they can afford a mortgage and is able to pass their mortgage lender’s affordability and eligibility assessments.
A Party is not Paying their Share
In the situation where you bought jointly and one party is not paying their share, it can create problems. Through our experience as a mortgage broker in Hull, we have encountered this numerous times and is normally due to a disagreement amongst people involved financially with the property.
When you are signing up for a mortgage with multiple names, you have confidence that everyone is going to keep up with all the payments. The event that one of the parties has missed payments can have a negative impact on your credit rating and score.
If you are in a similar situation, we do strongly recommend that your approach your mortgage lender directly. Alternatively, you can get in contact with an expert mortgage advisor in Hull, for mortgage advice in Hull, to manage everything.
Removing a person from a mortgage in Hull isn’t easy, but not impossible
We do recommend that this situation needs to come with an open mind and gained perspective as well as insight from a mortgage lender’s point of view. For example, initially, the lender will have had both you and your ex-partner contracted in, which provided them peace of mind on the property. Furthermore, it will reduce the risk of the mortgage going into arrears and/or repossession and they will have more than one option to go for when chasing payment.
Whereas letting someone for fro the property means one less person they can go to for chasing payments making it a risky situation for them. Generally, they like to know that the person wanting to keep the property is able to manage payments on their own based on income and affordability. The more suitable option for you may be to switch lenders and take out a mortgage in your sole name.
In many cases, like financial separations, a lump sum may be also raised against the property, which would give you the option to ‘pay off’ the other person tied into the deal with you. Issues can come up, the most common one being that one person may struggle to afford the whole mortgage in a sole name. If you are in this situation, worry not, there are still ways a mortgage broker in Hull may be able to help and discuss other options you may be able to go for like family guarantors etc. Our trusted mortgage team are also able to assist you with life insurance policies and any home insurance policies in your sole name.
Date Last Edited: 09/29/2023
