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Have you recently tied the knot or do you trust your husband , wife or partner enough to add him or her to your mortgage? Adding your spouse to an already existing mortgage may sound simple but it is not necessarily an easy task.The lender conducted a detailed review of your personal finances prior to granting you a mortgage and determined you could afford the property based on their review. Therefore, you are bound by the set terms of the mortgage on acceptance and it can be difficult to change the terms. |
Generally, lenders are careful about offering loans to people and adding a name to the paper work requires going through a refinancing process.
Refinancing is the most effective way to include your spouse in the mortgage. It is a process by which an existing mortgage is replaced with a new one under different terms. To get this process started, you must consider the following points:
a. Check the credit rating of your spouse before approaching the lender. If your spouse’s credit rating is not up to scratch, the lender may charge exorbitant interest rate or decline to refinance the existing loan. You should also consider whether adding your spouse to the mortgage is a good idea, this could leave you with a higher interest rate based on your credit scores. You may also have to early repayment fee and these fees can amount to hundreds or thousands of pounds.
b. Call your mortgage provider and let them know you would like to add your spouse’s name to the existing mortgage. It would very rare for the provider to just accept adding the name. They will conduct their investigations to check the financial health of your spouse so as to know if he or she will be able to continue with the monthly repayments in case you are not able to make them.
c. Approach other lenders about refinancing. It does not make sense to enter without ensuring the rate and associated fees are reasonable.
d. Documents which very your joint income, debts and assets should be handed over to the Lender .Many lenders provide a checklist of the documents required for the refinancing process.
e. Be on top of issues by tracking the mortgage process to ensure it is handled in a timely manner. If the lenders have the documents required to process the loan, they should make a decision considering whether or not to offer you loan and requesting you and your spouse to sign the documents on the new mortgage.
If you need assistance with adding your husband wife or partner to your mortgage or transferring a share of the property to them please email property@olaleslie.com or call us 02071830084
