Transfer of Equity

You may decide that you want to add or remove a borrower from your mortgage, as a result of a change in your personal circumstances.  This is often accompanied by a process called a transfer of equity.

A transfer of equity is a process where the ownership of part of a property is transferred, either as a gift or sold to another person. Because there is a mortgage on the property, we would require that the names on the mortgage are amended to match the ownership of the property.

This process could involve removing someone from the mortgage, adding someone or doing both at the same time. However, we’ll insist that at least one of the original mortgage holders remains on the mortgage.

If your mortgage is held on a shared ownership or shared equity scheme, or if you have a guarantor, then we won’t be able to offer you a transfer of equity. You can call us on 01752 236550 to discuss your alternative options.

What are the costs?

We do charge a transfer of equity fee (see our tariff for details). You should also consider other costs such as legal fees as you’ll need a solicitor to change the ownership of the property and change the mortgage.

There may be additional costs if you need to increase your mortgage. Please look at our Borrowing More section for more information.

What do I need to do?

  • In the first instance, if you are the borrower retaining the mortgage, call us on 01752 236550. We will talk to you about your needs and make sure it’s something we can consider.
  • For residential mortgages, we’ll arrange for one of our mortgage advisors to talk to you about any changes you want to make. They’ll talk to you about who is to be left on the mortgage, your commitments and income, and any future changes.
  • They might recommend some changes to the mortgage to ensure it’s affordable. We’ll send you details of the changes to be made, and ask you for some proof of address, proof of income, and proof of identity if we’re adding someone new to the mortgage.
  • Once we get this back, we’ll send your solicitor a mortgage offer and they will organise the transferral of the property to its new owners, and the transferral of any funds.
  • You should remember that anyone who is to be included on a mortgage with us will need to pass a credit check, and we’ll only offer a mortgage we believe is affordable. We expect that the people on the mortgage live in the property, unless this is a buy-to-let mortgage.

Do I need a solicitor?

We insist that a solicitor acts in the transfer of equity. They are there to ensure that the property is correctly transferred and to protect your and our interest in the transaction. This can be a solicitor of your choice, as long as they are on our solicitor panel. You can contact us on 01752 236550 to check if your chosen solicitor meets our requirements.

I need to remove my partner, but I can’t afford the mortgage

Firstly, get in touch with us. We will discuss your situation to see if there are any changes we can make that will make it affordable for you, like extending the term.

In some circumstances, the courts will decide that the property needs to be transferred into a sole name. While we will act on that order and consent to the property being transferred, the mortgage will remain in joint names.