Tuesday 12 December 2017

Why can't my partner take my father's place on my mortgage?

Picture posed: Thinkstock
Picture posed: Thinkstock

Siobhán Howe

My father helped me get my first mortgage a few years ago by taking out a joint mortgage with me. He helped me with the deposit but I pay the monthly repayments and I have never missed or been late with one.

I am getting married in the autumn so I have talked to my lender about transferring the mortgage over to my partner and removing my father from the agreement.

However, my lender is saying that I cannot do this and I have to apply for a new mortgage with my partner – can this be right? I pay the mortgage myself so, if anything, adding my partner would make it more secure.

Also my dad is due to retire so he wouldn't be able to support me in future in any case.

Your lender is correct when they advise you that you cannot transfer your partner onto the mortgage and remove your father from the mortgage contract.

When a mortgage is granted to two people, it is based on both of their credentials, eg employment status, salary, savings, so it is not possible for one person to be removed without the other getting a new mortgage in their own name.

As far as your lender is concerned, the mortgage is a joint mortgage between you and your father, even if he doesn't make the monthly repayments. He is as liable for the mortgage as you are, unless you negotiated specific terms with your lender before you both signed the mortgage agreement.

As you and your partner now want to take over the mortgage, you will need to apply for a new mortgage and be reassessed together by a lender as a couple.

In addition, both you and your father will need to agree about ending the original mortgage.


Irish Independent

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