How to remove someone from a mortgage
If you own a property with someone else, there may come a time when one of you wants to come off the mortgage and no longer own the home.
This often happens after a separation or divorce, but there are many other reasons too. You might have bought with a friend, had help from a family member, or now be able to afford the mortgage on your own.
Removing someone from a mortgage is often possible, but it isn’t as simple as asking your lender to take their name off.
Can you take someone off a mortgage?
Yes, you can take someone off a mortgage, but only if your mortgage lender agrees.
The lender needs to be confident that anyone staying on the mortgage can afford the repayments on their own. This normally means carrying out affordability checks, including looking at income, spending and other financial commitments.
If the lender is happy, they’ll agree to remove one borrower from the mortgage. If they aren’t, both borrowers may need to remain on the mortgage until circumstances change.
Removing someone from the mortgage often also means changing the legal ownership of the property. This legal process is known as a transfer of equity.
How do I remove ex partners from my mortgage?
One of the most common reasons for removing someone from a mortgage is after a relationship ends.
If you want to remove your partner or ex-partner from a mortgage, the first step is contacting your mortgage lender. They will explain what information is needed and whether the mortgage can continue in your sole name.
As above, the lender will normally carry out affordability checks to make sure you can afford the mortgage on your own. This usually involves providing details of your income, outgoings and any other financial commitments.
If your ex-partner owns part of the property, you’ll also need to agree what their share is worth. This is often based on an independent property valuation. You then subtract what’s left on the mortgage from the property’s value. The amount remaining is your equity.
For example, if your home is worth £300,000 and you owe £180,000 on your mortgage, you have £120,000 of equity.
If the property is owned as joint tenants, you will need to agree on what your share of the equity will be. If the property is owned as tenants in common your share will have been pre-agreed between you.
The remaining owner may be able to pay this from savings. If not, they may need to borrow more from their lender to buy out their ex-partner’s share.
Even if your ex has already moved out, both people remain responsible for the mortgage until the lender has formally approved the change and removed their name from the mortgage.
Once the lender has agreed, a solicitor or conveyancer will normally prepare the legal paperwork and update the ownership records where necessary.
Does it cost to remove someone from a mortgage?
Yes, there can be costs involved.
These may include:
- legal fees for a solicitor or conveyancer
- a lender’s administration fee
- valuation costs if the property needs to be valued
- mortgage fees.
If you need to switch to a new mortgage, check whether your current mortgage has an Early Repayment Charge (ERC). This is a fee some lenders charge if you leave your mortgage before the deal ends.
The amount you pay will depend on your lender and your individual circumstances.
How easy is it to remove someone from a mortgage?
It depends on your financial situation.
If the remaining borrower has a good and reliable income, and comfortably meets the lender’s affordability checks, the process can be relatively straightforward.
However, if affordability is tight, removing someone from the mortgage may not be possible straight away. The lender may ask both borrowers to stay on the mortgage until circumstances improve.
Each lender also has its own criteria. For example, they may require the mortgage to have been in place for a minimum period, have no missed payments or meet certain loan-to-value limits.
Speaking to your lender or broker as early as possible can help you understand your options and avoid unnecessary delays.
Other reasons to remove someone from a mortgage
Separation isn’t the only reason someone might want to remove a person from a mortgage.
Other common examples include:
- friends who bought together and now want to own separate homes
- a family member who helped someone buy their first home but is no longer needed on the mortgage
- someone who receives an inheritance and can now afford the mortgage on their own
- changes for tax or legal reasons
- a borrower with a Joint Borrower Sole Proprietor (JBSP) mortgage who no longer needs the additional borrower for affordability
With a JBSP mortgage, the additional borrower helps with affordability but doesn’t become a legal owner of the property. This means that if they’re removed from the mortgage, there is usually no need to change the ownership details with HM Land Registry.
Every situation is different, so your lender will consider your circumstances before deciding whether they can approve the change.
Summary
Removing someone from a mortgage is often possible, but it depends on your lender’s affordability checks and your individual circumstances. Acting early and speaking to your lender can help you understand the options and avoid delays.
Although the legal process is commonly known as a transfer of equity, most borrowers are simply trying to remove someone from their mortgage and are unaware that the legal side of property ownership also needs addressing. Your broker, lender and solicitor can explain the steps involved and help you complete the process as smoothly as possible.
