Sammie Ellard-King
I’m Sammie, a money expert and business owner passionate about helping you take control of your wallet. My mission with Up the Gains is to create a safe space to help improve your finances, cut your costs and make you feel good while doing it.
Quickfire Roundup:
If you are looking to add someone to your mortgage, there are two ways that this can be done.
Firstly, you can approach your current lender and ask to add someone to your own mortgage.
The second option is to seek out a new mortgage lender and take out a new mortgage that includes both names.
What’s right for you will depend on your personal circumstances.
If you own your own home and currently have a mortgage, the time may come when you want to know how can you add someone to a mortgage, like a spouse or a partner to this.
If you look at yourself as a couple where you both contribute to the household, you may well feel that this is just the right thing to do.
I have been there myself. At the time of buying a house, it made sense for the mortgage application to be in my sole name.
That’s because my income was more than my then-partner’s and so could borrow more than with a joint mortgage. It meant that adding my partner to the mortgage came later.
How was it done? What are the options out there to add your partner to your mortgage? That’s what I’m going to explore now.
Boon Brokers are one of the UKs leading online mortgage brokers. They have a 5-star excellent Trustpilot rating with over 543 reviews.
- No mortgage fees
- Whole of market access
- Free online consultations
- Directly authorised by the FCA
- No in person meet ups
Table of Contents
How can you add someone to a mortgage?
We now all know that it can be done, but what are the mechanics behind it? Is it a straightforward process or are there complicated hurdles in the way? How can you and your partner jointly own your property?
Well, there are two approaches that you can take and here’s a look at these now:
Add someone to your existing mortgage
The first option is to simply approach your existing mortgage lender. You have already proven that you’re credit history is acceptable and that you can meet the monthly mortgage payments.
For your partner to be added to your mortgage loan, they will have to prove the same thing.
Effectively, adding someone to your mortgage means that you then have a joint mortgage. This means that both you and your partner are equally responsible for the mortgage payments.
Your current lender will ask that you provide evidence that allows your partner to pass affordability checks as well as carry out credit checks.
If your partner is currently working then essentially you’ll be offering your mortgage lender the security of knowing that two wages are coming in.
If you’ve previously been able to comfortably meet these mortgage payments yourself, then you shouldn’t face many problems adding your partner.
However, if your partner relies solely on your income, your current lender may be a little warier.
Apply for a new joint mortgage
This would mean a remortgage. You could put in an application with your existing lender or you may decide to approach other lenders.
Using a mortgage broker can help you to find the best deal for you and direct you to a mortgage company that can cover your needs.
Whether you apply via your current mortgage lender or a new lender, the effect is the same. You are bringing your existing single mortgage deal to an end and entering into a new one.
Boon Brokers are one of the UKs leading online mortgage brokers. They have a 5-star excellent Trustpilot rating with over 543 reviews.
- No mortgage fees
- Whole of market access
- Free online consultations
- Directly authorised by the FCA
- No in person meet ups
Adding someone to your mortgage early repayment charges
You’ll need to decide if you should stay with your current lender, or you should look at other mortgage lenders.
One of the things that you’ll need to consider when making this decision, is any early repayment charge that you may be liable for.
When you took out your current mortgage, you’ll have been offered some sort of deal. Generally, a mortgage lender will offer you an attractive rate for a fixed term before you are then put onto its standard rate.
While these introductory rates can see you with lower monthly payments, the sting in the tail is the early repayment charge.
The early repayment charge ties you in with your current mortgage lender. If you try to leave, you’ll face a hefty charge and the earlier into your deal you are, the higher that early repayment charge will be.
When this is the case, it’s probably best not to explore other lenders as adding your partner to your existing mortgage will save you money.The early repayment charge gets lowered the further into your existing deal you are.
If you’re through the period and face no charges, or the fee is minimal, it’s worth using a mortgage broker so that you can find the best deal.
Should you add someone to your mortgage and title deeds?
When it comes to adding someone to your mortgage, they also get added to the property deeds and this gives them certain rights.
No one can tell you what is right or wrong or if this is a good idea, but there are key points to consider:
- Relationship status – if you’re either married or in a civil partnership you don’t really gain anything by adding someone to your mortgage and title deeds. That’s because you both have a legal right over the property regardless of which of you appears on the property deeds. If you’re not married, a joint mortgage could be right but just be sure it’s what you want.
- Legal fees – a mortgage lender has to approve adding someone to your mortgage, but there is also legal work that needs to be carried out. This needs the assistance of a solicitor. The process that is gone through is known as transfer of equity. Transferring equity to your partner will lead to their names being added to the property title and this will then be registered with HM Land Registry.
- Other fees – as well as paying fees for the legal process, there may be other fees charged by the lender. In some circumstances, there may also be a need to pay stamp duty. This applies in very few circumstances and a solicitor would be able to advise you.
- Association of credit – if your partner’s credit score is less than great, you may want to think about adding them to your mortgage. Your credit history will then become linked, and their bad credit score could impact your credit going forward.
Joint tenants vs. tenants in common
When it comes to jointly owning a property, there are two main ways of doing this. Here’s a quick comparison of these now:
Joint tenants
With a joint tenancy:
- Both parties own 100% of the property
- If the property is sold, or if you separate, the equity will be split between you equally
- If one partner dies, then the ownership of the property will automatically pass to the other
Tenants in common
With this other common agreement:
- Each partner owns a share of the property. One partner could own a bigger percentage share than the other or you could choose an equal share
- If the property is sold the equity you receive depends on the size of your share of the property. Your percentage of equity will mirror your percentage share of the property
- If one partner dies, the other doesn’t automatically own the whole property. The remaining partner retains their share. The deceased can leave their share to whoever they want to in their will. This could be their partner a friend or a family member of their choosing
FAQs
Can I add an adult child to my current mortgage?
Yes, you would be able to add your son or daughter to your existing mortgage and you would also be able to apply with another lender.
Your child would need to be over 18, pass affordability checks (with evidence that they have sufficient income) and have the required credit score.
What fees are involved with adding someone to a mortgage?
The fees to pay when adding someone to a mortgage include admin fees to the mortgage provider, legal fees and, potentially, stamp duty.
If you’re applying for a mortgage with a new lender and are using a mortgage broker, there may be other fees for this advice too.
Final thoughts on adding someone to your mortgage
If you want to add someone to a mortgage, then you now know that this can be done.
The next step would be to check your current deal so that you know where you stand with any early repayment charge, and then get in touch with a mortgage broker to help you explore the deals that exist.
The watch outs here are looking after your credit report (your partner’s poor credit can impact yours) and considering what would happen if you went your separate ways and you find yourself with a new partner.
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Disclaimer: Content on this page is for informational purposes and does not constitute financial advice. Always do your own research before making a financially related decision.
