Can I add someone to my mortgage?

Can you add a person to an existing mortgage?

Yes, it is possible to add someone to your existing mortgage thanks to a process known as an equity transfer. You can add a partner, spouse, family member or friend, as long as they meet the lender’s affordability requirements. You can also remortgage onto a new deal with the new person added as an applicant alongside yourself. If you need help boosting your affordability, you could also add a family member as a guarantor through remortgaging onto an Income Boost mortgage.

Affordability criteria can vary from one lender to the next, but most lenders will explore the following:

1. Credit history

Does the person you want to add pay their existing debts on time and in full? Your lender will take a look at their credit report to get a feel for the type of borrower they are. If they’ve struggled with credit cards, loans or mortgages in the past, your lender may be reluctant to add them to your mortgage. If this happens, don’t give up. It’s possible to get a mortgage with adverse credit. You might just need a little help from a mortgage broker. 

2. Income

Can your partner, friend or family member afford the repayments? Your lender might check that they can afford the mortgage payments on their own, even if you’ve agreed to a 50/50 split of the monthly costs. That way, if you lose your source of income, the other mortgage holder can cover the repayments by themselves.

3. Age

Will the person you want to add retire before the end of the mortgage term? Some lenders will want proof that the person you want to add can afford the repayments in retirement, or that the oldest applicant is younger than a certain age before the end of the mortgage term.

Do you need a solicitor to add someone to a mortgage?

Yes, you’ll need a solicitor or conveyancer to handle the legal aspects of adding someone to your mortgage. They’ll ensure that the property title is updated with the new owner’s name, the legal documents are filed correctly and both parties understand their legal rights and responsibilities.

How to add someone to a mortgage

You can add someone to your mortgage by asking your existing lender to complete the equity transfer for you or by remortgaging onto a new deal. Before you go ahead and contact your existing lender, it can be wise to find out all the options open to you first. For example, moving to a new provider could be the best option. Or, if you have a fixed-rate mortgage and you’ll need to pay an early repayment charge to leave the deal early, sticking with your current lender may be cheaper. Keep in mind that some lenders will charge a fee to complete the equity transfer process and you may find a better deal elsewhere. Speaking to a mortgage broker can help you work out the best option for you before you apply to a new mortgage deal, or start an equity transfer.

Learn more: The essential guide to buying a house together

Does it cost to put someone on your mortgage?

Yes, it usually costs to add someone to your existing mortgage. Your lender might charge a processing or ‘change of parties’ fee for updating your mortgage agreement. Lenders set their own fees, but they’re usually somewhere between £100 to £200. If you remortgage your home to add someone else to your mortgage, your current lender may charge you a fee if you leave your mortgage deal early. Early repayment charges are usually somewhere between 1% and 5% of the outstanding loan amount, but if your new interest rate is better than your old deal, your savings might outweigh the fees. You may also be able to add the early repayment fees to your new mortgage, but you’ll pay more interest over the course of your term. 

Solicitors or conveyancers will also charge for handling the property title transfer and associated paperwork. Legal fees can vary depending on the firm, but you can usually expect to pay between £250 to £750 plus VAT to add someone to your mortgage.

Adding someone to your mortgage could result in a Stamp Duty bill if money or property equity is transferred. Find out more about Stamp Duty here.

Speak to a mortgage specialist for help weighing up the cost of staying with your current lender vs remortgaging.