Adding or removing someone for your mortgage

If you’re hoping to transfer the equity you have in your home, there are a few things you need to know to help get the process started. Here are some of the questions we hear the most:

Do I have to take advice?

  • You must take advice to ensure this option is suitable for you
  • We need to be sure you’re making the right choice for your individual circumstances. A financial adviser or broker will be able to talk you through your options in detail and apply on your behalf.

What if I want to apply for additional borrowing at the same time? 

  • You must take advice
  • Your adviser will need to submit a separate application form to apply for the additional borrowing at the same time as your Moving Home application.

Do I need a solicitor? 

  • You’ll need to instruct a solicitor to act on your behalf. Your solicitor will prepare the transfer documents to change ownership of the property
  • We’ll instruct solicitors to act on our behalf. Our solicitors will approve the transfer documents and will need to be satisfied with all matters relating to the title of the property
  • The solicitors will communicate with each other to ensure a smooth transfer.
  • You’ll incur the cost of both our and your solicitor.

Retirement Mortgage/Equity Release Mortgages only

  • You need to have independent legal advice from your own solicitor so all parties on the mortgage understand the legal implications of a retirement or equity release mortgage.

Will I have to pay any fees?

  • You’ll need to pay our administration costs of adding or removing a party. For 50+/RIO/Retirement Mortgage/Holiday Let mortgages this is £250. For Equity Release mortgages this is £350. You’ll need to pay this when you submit your application
  • We’ll need a valuation of your property and you may need to pay a fee for this depending on the property purchase price/value
  • You’ll need to pay both our and your legal costs. Our legal fees are variable and depend on the amount of work the solicitor must do. Please contact your solicitor for details of the fees they charge
  • You’ll need to pay your financial adviser for the cost of providing advice
  • Please see below our tariff of fees and charges.

How long does the process take?

  • Once we receive the application form and fees, it takes a few weeks to issue you with a mortgage offer. This depends on how quickly we receive an updated valuation of your property
  • We may also ask your adviser for information so we can assess your ability to repay the loan. For example if a party is being removed, to ensure the loan remains affordable for the remaining party
  • Once our solicitor receives our mortgage offer to instruct them to act on our behalf, it takes up to three months to complete on the transfer of ownership.

How do I start the process?

  • Your adviser will need to send us a completed application form and our administration and valuation fees, if applicable.

What are my next steps?  

  • You should contact your financial adviser
  • We aren’t able to recommend a financial adviser, however, Unbiased.co.uk is a good place to start your search
  • Your adviser will discuss all the options with you to make sure the decision is right for you
  • If you decide to go ahead, your adviser will let us know and they’ll need to send us a completed application form, the administration fee and your valuation fee, if applicable.

What happens next?

  • We’ll need an up-to-date valuation report. We may need a valuer to visit the property
  • We’ll review the valuation report to assess your property and its current value
  • If the valuation report is acceptable, we’ll issue a mortgage offer and will send this to you and to our solicitors to instruct them to act
  • Your solicitor should then contact our solicitor to arrange for the transfer of ownership.

What happens with a 50+, RIO or Holiday Let Mortgage?

  • Once we’ve verified your ability to repay the mortgage, we’ll need an up-to-date valuation report. We may need a valuer to visit the property
  • We’ll review the valuation report to assess your property and its current value
  • If the valuation report is acceptable, we’ll issue a mortgage offer and will send this to you and to our solicitors to instruct them to act
  • Your solicitor should then contact our solicitor to arrange for the transfer of ownership.

Will I have to repay my loan?

  • If you want to add someone to the equity release loan and they’re younger than you, you may need to repay part of your loan to meet our eligibility criteria
  • If you’re removing someone from a 50+, RIO or Holiday Let mortgage and the loan is no longer affordable for the remaining party, you’ll have to repay part of your loan
  • No early repayment charges will apply if we ask you to repay some of your loan.

If I want to repay some of my loan, would I pay Early Repayment Charges?

  • Yes, if it’s your choice to repay part of your loan and you’re within the period where early repayment charges apply.

If you have any other questions, please contact us using the details below or speak with your adviser.

Our Contact Details:

Tel: 0800 731 4076

Email: contractvariations@hodge.co.uk

Important documents

Adding or removing a party application form

Holiday Buy to Let adding or removing a party application form

Tariff of fees and charges explained