Transferring my Property Deeds When I have a mortgage all depends on what you want to do about the mortgage.
- Do you want to repay it in full and have no further mortgage obligations?
- Do you want to keep the existing mortgage and have someone removed from the mortgage or added to it?
- Do you want to take out a new mortgage in the new owner’s name?
Transferring my Property Deeds when you have no ongoing mortgage
If you just want to repay the existing mortgage, we will need to have the details of your existing mortgage account with your lender so we can arrange for the mortgage to be paid off as part of the transfer.
Keep your existing mortgage
If someone is being removed from the title, the lender will need to satisfy themselves that those remaining on the title documents can afford the mortgage repayments.
If someone is being added to the title, they will need to assume an equal responsibility to the mortgage as those already on the title (those that already own the property). The lender is likely to want to ascertain whether the incoming person can equally afford the mortgage repayments – just like if they were obtaining a new mortgage.
In both instances, the lender would need to provide their consent in writing to the addition or removal of someone from the ownership of the property. The consent can be either the lender’s signature on the transfer deed or a letter confirming their consent. This will depend on the specific lender.
Getting a new mortgage
If the current mortgage is being paid off and you are taking a new mortgage, this is known as a re-mortgage.
This is essentially a second element to the transaction.
We will need to report to the new owners on the new mortgage that is being taken out and you will all need to sign new mortgage documents. These will need to be returned before the new mortgage funds can be ordered and the change in name can take place.