can I add my partner to my mortgage

March 18, 2024

168
Yes, you can add your partner to your mortgage, but it involves a process called a mortgage transfer or a transfer of equity, where you change the legal ownership of the property to include your partner. This process typically requires approval from your current mortgage lender, and they will assess your partner’s financial circumstances as part of the application. You may also need legal advice to ensure the transfer is completed correctly and to understand any potential stamp duty liabilities.

Steps to Add Your Partner:

Contact Your Mortgage Lender:

Inform them of your intention to add your partner to the mortgage. The lender will assess your partner’s credit history, income, and other financial commitments to determine if they agree to the change.

Assessment and Approval:

Your lender will conduct an affordability assessment similar to a new mortgage application. This is to ensure that both you and your partner can afford the mortgage repayments.

Legal Process (Transfer of Equity):

Adding someone to your mortgage involves a legal process known as a transfer of equity, where the property’s ownership changes. This requires the services of a solicitor or conveyancer who specialises in property law.

Consider Joint Ownership Agreement:

It’s advisable to consider entering into a joint ownership agreement, which outlines what happens to the property if you and your partner decide to separate in the future.

Potential Costs:

Be aware of potential costs, including lender’s administration fees, legal fees, and possibly stamp duty (depending on the value of the share being transferred and current stamp duty thresholds).

Stamp Duty Land Tax (SDLT):

In some cases, adding a partner to the mortgage may trigger a stamp duty liability, especially if the transfer involves a significant change in ownership value. Check the current rules and exemptions with your solicitor.

Notify Your Home Insurance Provider:

Once the process is complete, update your home insurance policy to reflect the change in ownership.

Benefits and Considerations:

Shared Responsibility:

Adding your partner to the mortgage means you share the responsibility for the mortgage repayments, which can be beneficial for financial planning.

Credit Implications:

Your partner’s credit history will be considered, and their financial behaviour will impact the mortgage in the future.

Future Planning:

This step often reflects a long-term commitment to sharing your lives and financial responsibilities, making it important to consider future implications carefully.

Conclusion:

Adding your partner to your mortgage is a significant financial decision that requires careful consideration and planning. It’s essential to ensure that both parties can comfortably afford the mortgage repayments and to understand the legal and financial implications of such a move. Consulting with financial and legal professionals can help navigate this process smoothly and ensure that all aspects are properly addressed.

Answered by:

Natalia Barry

Mortgage and Protection Adviser

Last Updated:

18.06.2024

Answered by:

Natalia Barry

Mortgage and Protection Adviser

Last Updated:

18.06.2024

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