What is a transfer of equity mortgage?
A transfer of equity mortgage is the process of remortgaging (changing lender) while at the same time adding or removing someone from the mortgage.
A Transfer of Equity (ToE) is where the current owners wish to alter who is registered as an owner of the property, the alteration must always leave one original owner remaining on the title.
These changes might be needed if you marry and want to add your spouse as a co-owner. Or it could be that the property was originally purchased jointly and that relationship has now ended. This is commonly referred to as buying someone out of a house.
It is more common for a transfer of equity to take place alongside a re-mortgage but the legal side is still applicable to unencumbered properties.
A remortgage lets you make quite a few changes to your mortgage arrangement, here’s our Top 8 acceptable reasons for a remortgage.
Useful pages:
- Remortgage guide
- Residential remortgages
- Holiday let remortgages
- Buy to let remortgages
- Day one remortgages
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