Adding a Name to Your Mortgage or Removing One From It

A mortgage is a long-term financial commitment, and your situation will likely change over time. So you may find yourself in a position where you need to add a name to your mortgage, remove one, or transfer ownership to another person. 

Here we’ll explain the key steps of adding a name to an existing mortgage (and if there are fees), how to remove someone’s name, and how to carry out a transfer of equity with your mortgage to another person in the UK.

Can you change the names on your mortgage deeds?

Yes, this is possible. Adding or removing a name without increasing the amount you’ve borrowed is called a “change of borrower” or a “transfer of equity”. To carry out a change, you’ll need approval from your lender as they’ll want to assess if adding or removing a person impacts your ability to repay the loan.

It’s important to follow the correct steps and get expert support from a broker because there are legal and financial considerations to be aware of when adding or removing a borrower to your existing mortgage.

Adding a name to an existing mortgage

If you’re thinking about adding someone to your mortgage deeds, below is how you can do it, along with some key considerations.

How to add a name to a mortgage

Here’s what the process of adding someone to a mortgage will usually look like:

1. Speak to an expert: Before you approach your lender and set things in motion, it’s worth discussing your plans with an expert advisor to ensure this is the best course of action. 
2. Get approval from your lender: Your advisor will help you get all the necessary paperwork and documents together. Your lender will want to assess the finances of the person you’re adding to the mortgage and make sure they meet any specific eligibility criteria. 
3. Speak to a solicitor: If you’re adding another name (or multiple names), you’ll need a solicitor to help prepare and submit the legal paperwork required to change the mortgage deeds. This will also involve deciding whether you opt for joint tenancy or tenants-in-common. Your broker can help advise you on this and introduce you to a solicitor if you don’t already have one.
4. Transfer of equity: To transfer a registered title, you’ll need to complete a transfer of equity using a TR1 form (or TP1 in some instances) from HM Land Registry. 
5. Amend the mortgage deed: Your lender will update the mortgage to include any new name(s). 

Using an experienced broker from the beginning of this process is hugely beneficial because they’ll walk you through everything and assist with getting all the correct paperwork submitted.

What to consider when adding a name

There are a few things to consider if you want to add a name to your existing mortgage:

• Additional fees: Adding a name to a mortgage will likely mean needing to pay solicitor fees and broker fees. Your lender may also charge an admin or arrangement fee to add a name. 
• Affordability: Your lender will check anyone being added to the mortgage can afford part of the repayments. However, this might not be an issue if the existing mortgage holder can comfortably afford current payments. 
• Credit checks: Lenders will also carry out a credit check. Don’t worry if the person being added has bad credit, your mortgage broker will be able to help explore alternative solutions. 
• Borrowing responsibility: Adding a name to a mortgage - perhaps a partner, spouse or child - needs to be thought about carefully because it will legally make them responsible for the repayments, and mean that they own a piece of the property. 
• Tax impact: It’s important to be aware of any tax implications when adding a name to your mortgage. For example, you may need to pay additional Stamp Duty Land Tax (SDLT) or capital gains tax (CGT), depending on your situation. 
• Lender rejection: If your current lender rejects the application to add a name to your existing mortgage, you might need to explore the possibility of remortgaging (but your broker can advise you on this). 

Joining someone else’s mortgage

If you’re the person being added to someone’s mortgage, make sure you fully understand any extra financial responsibilities you’ll be legally liable for. Along with being responsible for repayments. You also need to be clear that this can affect your credit status and tax position. 

It’s important to take the time to make sure you’re completely comfortable with the new arrangement. Having an expert broker in your corner is extremely helpful for explaining everything in plain English, because the language used by solicitors and lenders can be complex and full of confusing industry jargon. 

Get expert advice about transferring equity today

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Removing someone’s name from a mortgage

The steps for removing a name from a mortgage are similar to adding someone, but potentially with more emphasis on the affordability checks.

How to remove a name from a mortgage

Here are the basic steps to remove a name from a joint mortgage in the UK:

1. Speak to an expert: Before you approach your lender to remove a name, it’s worth discussing your situation with an expert broker to ensure this is the correct approach. 
2. Contact your lender: Your advisor will help you get all the necessary paperwork together to present to your lender. The lender will check whether the person(s) remaining on the mortgage can afford the repayments. 
3. Speak to a solicitor: A solicitor will help advise you on the proper legal course of action (which can depend on your situation). If everything’s in order, they’ll assist with removing a name from the mortgage deeds.
4. Complete a transfer of equity: You’ll need to complete a transfer of equity using a TR1 form (or TP1 in some instances) to transfer a title. 
5. Amend the mortgage deed: Your existing lender will update the mortgage to remove someone’s name if this can be done without refinancing. 
6. Explore remortgaging: Removing someone from a mortgage is more likely to lead to affordability issues (if the person being removed isn’t being replaced by another borrower). So you may need to explore remortgaging rather than removing a name from your current mortgage contract deeds.

Using an experienced broker from the beginning of this process is hugely beneficial because they’ll be able to walk you through everything, even providing sample letters for you to use and help explore all possibilities to get the result you want. 

What to consider when removing a name

There are a few key things to think about if you want to remove a name from your mortgage:

• Affordability: Your lender will need to make sure the remaining person(s) on the mortgage deeds can comfortably make the repayments. If not, you may have to look at selling or remortgaging the property.
• Remortgage costs: If you end up refinancing the property, there might be additional costs and fees. This can include an early repayment charge (ERC), admin or arrangement fees, and possible taxes (like stamp duty or CGT). 
• Fees: Even if you don’t need to remortgage, you may still have to pay admin charges to your lender, along with solicitor fees, possibly broker fees, and any additional taxes. 

Removing a name from a mortgage after separation or divorce 

A particularly common instance when you might need to remove a name from your mortgage is after a divorce or separation. However, when removing a wife or husband’s name from a mortgage following a divorce, it’s crucial everything is done properly through your conveyancing and divorce solicitors. 

Otherwise, you could end up with unnecessary hassle and issues to deal with. Speaking to an expert broker who specialises in divorce and removing names from mortgages is the best way to get unbiased and qualified support throughout the whole process. 

Can you transfer a mortgage to another person?

Yes, and it’s becoming increasingly popular. For example, you might want to transfer an existing mortgage to someone else (perhaps a family member). Similar to adding or removing a name, this is still technically known as a transfer of equity.

How to transfer mortgage equity

Here’s an outline of the basic process if you want to carry out a transfer of equity and change your mortgage to another person like a family member: 

1. Speak to an expert: Before you attempt to transfer your mortgage to someone else, it’s worth discussing your current (and future) finances with an expert mortgage advisor. 
2. Contact your lender: Your current mortgage lender must agree to the transfer of equity, and this will involve running affordability and credit checks.
3. Instruct a solicitor. A solicitor will need to handle the legal transfer of ownership and you’ll have to fill out a TR1 form if it’s a complete transfer of equity. 
4. Get a valuation. This can be a key difference with a complete transfer of equity. A property valuation will be required, and the process can become more or less complex if there’s money changing hands. 
5. Complete the transfer of equity. The process can usually be completed between 3 weeks and 3 months, but the speed will depend on your lender and solicitor.

Things to consider about a transfer of equity

Here’s what you’ll want to think about first if you want to transfer a mortgage to another person:

• Cost and fees: Like with other transfer of equity processes, you’ll likely need to pay solicitor and broker fees, and possibly mortgage arrangement or admin fees.
• Tax implications: There can be a greater tax impact when completely transferring a mortgage to someone else (for them and you). Make sure you’re aware of any taxes you need to pay like CGT, or whether the person taking over ownership needs to pay stamp duty.
• Approval and paperwork: Transfer of equity to someone else can be relatively complex and needs to be approved by the mortgage lender and a solicitor. 

Reasons why you might want to transfer equity

Here’s a quick summary of some of the key motivations you might have for transferring a mortgage to another person:

• Gifting a property or transferring the house to an adult child
• Transfer home ownership to a new spouse or partner 
• Divorce or separation
• Resolving joint ownership of a home
• For tax efficiency or to help with estate planning and inheritance tax (IHT)

Your exact reasons will be unique. Our brokers have plenty of transfer of equity experience relating to all sorts of scenarios and situations. They can direct you on the best course of action to transfer ownership of your property and mortgage.

How our brokers can help you to add, remove, or transfer names

There are plenty of nuances to navigate when adding, removing, or transferring names on a mortgage. Your exact steps will depend on your current finances and goals, which will be unique to you. 

Discussing your plans and options with one of our skilled brokers is the most cost-efficient way to get the result you’re looking for. It’s vital to have independent support from an experienced advisor who can prioritise your interests throughout the whole transfer of equity process.

Here are just some of the reasons people choose us for their mortgage transfer of equity needs:

• Our brokers specialise in adding and removing names to mortgages
• Your first consultation is free with no obligation to proceed
• We are 5-star rated on leading review websites
• We could help you save time and money in the long run

Ready to take advantage of a free, no-obligation chat with a broker who specialises in mortgage transfers of equity? Get started here.