Can a Joint Mortgage be Transferred to One Person?

When individuals take out a joint mortgage, their circumstances may change over time. Separation or divorce can raise questions about what happens to the mortgage and how it can be modified. This blog post explores the options for transferring a joint mortgage to a single individual.

What Happens to a Joint Mortgage After a Separation?

In the event of a separation, both parties remain legally responsible for the mortgage repayments, regardless of who continues to reside in the property. Failing to make payments could negatively impact both individuals’ credit scores.

How to Transfer a Mortgage

One party can apply to have the mortgage transferred solely into their name. This process, known as a ‘mortgage transfer’ or ‘remortgage’, involves the lender conducting affordability checks and agreeing to the change. The remaining party must provide their consent.

Replacing Someone on Your Mortgage with Someone Else

Alternatively, it may be possible to remove one party from the mortgage and add a new individual, such as a new partner or family member. This option is subject to the lender’s approval and the new applicant meeting their eligibility criteria.

Can I Transfer a Mortgage if I’m Self-Employed?

Self-employed individuals can transfer a mortgage, provided they meet the lender’s income and affordability requirements. This typically involves providing evidence of stable self-employment earnings over a specified period.

It’s crucial to note that transferring a mortgage may incur fees from the lender, such as an exit fee for the existing mortgage and arrangement fees for the new one. Early repayment charges could also apply if the mortgage is on a fixed rate.

Before proceeding with any changes, it’s advisable to seek professional advice from a mortgage advisor or solicitor, who can guide you through the process and ensure you understand the legal and financial implications.