Adding names to a mortgage

nosedive · 24-09-2016 6:26pm #1

Hi all, apologies if this would be better posted in a legal forum but I am in need of some advice;

essentially, the home my wife and I share was bought in her name before we got married. We've recently had wills drafted where it was recommended we add my name to the title of the house.

When we requested how we might do this the bank stated we would need to submit P60s, a new application etc etc but this raised suspicion on my part. Is this the banks playing silly buggers trying to get us onto a different interest rate or extend make us commit to a new mortgage (starting repayments on a year basis)?

I can understand they might have an interest in the house but my name is only being added and to date, whilst being exclusively in my wife's name, it's been serviced as per the terms. Can't we ask a solicitor simply to do a conveyancing exercise with the bank's agreement?

Any advice appreciated, remortgaging seems a bit excessive to add my name.........

fits · 24-09-2016 6:49pm

Why did they say is it necessary to add your name to the house? Is it because purchase occurred pre marriage? Wouldnt the house pass to spouse on death anyway?

riclad · 24-09-2016 7:00pm

iF The will is drafted correctly i can,t see the point of changing the mortgage ,
IE if i pass away the house will go to my husband .
Its not like you ,ll get any tax credits on the loan .
Are you concerned maybe what happens if she dies before the loan is 100
per cent paid.

nosedive · 24-09-2016 7:01pm

Our solicitor recommended it - we're going back to him for more detail on exactly why but I don't think it's to do with the purchase being pre-marriage.

I seem to recall it came up when we were discussing life policies (and the fact that my wife has one linked to the mortgage).

nosedive · 24-09-2016 7:01pm

Our solicitor recommended it - we're going back to him for more detail on exactly why but I don't think it's to do with the purchase being pre-marriage.

I seem to recall it came up when we were discussing life policies (and the fact that my wife has one linked to the mortgage).

fits · 24-09-2016 7:01pm

riclad wrote: »

iF The will is drafted correctly i can,t see the point of changing the mortgage ,
IE if i pass away the house will go to my husband .
Its not like you ,ll get any tax credits on the loan .
Are you concerned maybe what happens if she dies before the loan is 100
per cent paid.

Wouldnt mortgage protection policy cover that eventuality?

fits · 24-09-2016 7:02pm

nosedive wrote: »

Our solicitor recommended it - we're going back to him for more detail on exactly why but I don't think it's to do with the purchase being pre-marriage.

.

If you find out why could you please update us? Im interested to know now.

nosedive · 24-09-2016 7:41pm

Will do!

mrsgiller · 24-09-2016 7:54pm

You can easily add your name to the ownership of house under family home legislation, mortgage would involve the bank though

nosedive · 24-09-2016 8:15pm

I can easily add my name - good, but you mention the mortgage would involve the bank. I'm not sure what you mean by this.

The problem is we don't want to make any adjustments to the mortgage as regards term or repayments. I'm looking for advice on the banks request for us to effectively remortgage - is that necessary just to ad my name to the title?

cml387 · 24-09-2016 8:49pm

The bank are correct. The mortgage is a legal agreement between the bank and whoever borrowed the money. Your name cannot be just "put on the mortgage".

24-09-2016 8:55pm

Does your solicitor suggest adding the name to the deeds or to the mortgage as it's not the same thing.

I don't see why the back could stop you adding a name to the deeds but the mortgage is different as it is a specific thing linked to the person who took it out and their circumstances.

riclad · 24-09-2016 8:57pm

Until the mortgage is paid off ,the bank hold on to the house deeds .
Then they give the person who is the loan the deeds .
Then you can get your name on the deeds .

Or get your name on the mortgage with the help of the bank.

nosedive · 25-09-2016 5:54am

Riclad, I had alluded to what you were saying in my original post but you seem to know a bit about what's at play here. My post was prompted by a suspicion raised when instead of discussing an amendment to the mortgage/title (adding my name) the bank seemed to suggest abandoning the existing agreement and replacing it with a new one (they requested that we would both submit all required documents and complete a new application form).

I only wonder if they're using it as an attempt to get more money out of us by tying us to a higher interest rate or effectively extending the term.

From my point of view it is a minor amendment, it does not affect the repayment abilities as it was always in my wife's name anyway.

I will wait to see what further light my solicitor will shed and determine if it's really necessary but I thought boards might be a good place for some insight! ; )

December2012 · 25-09-2016 9:57am

If your wife died you would have to get a grant of private to receive the house. If your name is on the deeds it goes to you automatically by survivorship so no need for private and a cheaper, quicker process

You can't change the deeds without the banks consent.

If they are now making you one of the people who is using their credit they are going to want to see all the appropriate paperwork. Which makes sense. You are a new borrower.

Have you discussed this with the bank?

nosedive · 25-09-2016 10:05am

December 2012, thanks for that. What you say sounds familiar- that's what our solicitor was getting at.

We haven't discussed yet with the bank, to be honest they went in a very talkative mood! Having said that, we approached them a few weeks ago about paying off the mortgage early and they weren't very helpful then either.

I'll have to play along I guess!

Thanks for the info.

amber2 · 25-09-2016 10:14am

nosedive wrote: »

December 2012, thanks for that. What you say sounds familiar- that's what our solicitor was getting at.

We haven't discussed yet with the bank, to be honest they went in a very talkative mood! Having said that, we approached them a few weeks ago about paying off the mortgage early and they weren't very helpful then either.

I'll have to play along I guess!

Thanks for the info.

Re clearing the mortgage just call to your branch or ring mortgage department and request a surrender value letter, figure they quote holds for 7/10 days, if your mortgage is fixed there will also be a penalty for breaking, this will be quoted on the Surrender Value Letter. Edit you may be asked by What means you are clearing the loan I.e. From savings, switching, inheritance etc.

A2LUE42 · 25-09-2016 10:46am

I would imagine it is for the scenario where the OP dies. In the current situation, the mortgage is still outstanding. If they are both on deeds and mortgage then it is paid off if either dies. With correct insurance in place and paid.

riclad · 25-09-2016 11:22am

ARE you on a low interest fixed rate loan ?
you have to be careful you are not switched over to a standard variable
rate loan ,and end up paying 3.5 per cent plus on the mortgage .

doctorchopper · 26-09-2016 10:23am

I'm in a similar situation, except we are not married. The house and mortgage is in herselfs name but i've been paying half for almost the full term. We wanted to get my name onto the remaining mortgage but the banks was making us re apply for the mortgage plus pay all the fees and that crap, was working out to cost almost 2000 euro. so that was a no go

Adding names to a mortgage

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