Secured loan and transfer of equity

[Mrscurious]

I have recently applied for a transfer of names on mortgage from my ex to my now husband. They call it remortgage and it was accepted. However, welcome finance, which the account is owned by Cabot and they're appearing on my deeds title as second charge. Question is, can the remortgage go ahead successfully without Cabot getting involved? I didn't mention them to my lender. If I get consent from Cabot to transfer of equity, will everything else run smoothly. I wanted to keep them separate and the debt is still being paid. The remortgage is for the balance without borrowing extra. Any advice? All this legal stuff is confusing.

[Amethyst]

Re: Secured loan and transfer of equity

Welcome finance is a secured loan that you are still making payments on ( to Cabot ). When you did the remortgage did you go through income & expenditure etc ?

[Mrscurious]

Re: Secured loan and transfer of equity

Welcome finance is a secured loan that you are still making payments on ( to Cabot ). When you did the remortgage did you go through income & expenditure etc ?

Yes I did. Strangely welcome finance didn't put anything on my deeds when the loan was with them. They went bust and sold my account to Cabot. Cabot then added their info as a second charge. I did do expenditure but purposely left them out. Hoping that they will be done seperately.

So is it possible? Or and if I get consent from Cabot, will cause me any issues with my remortgage.

I didn't know they would remortgage the whole thing. I thought it would just be transfer of names and then sort the land registery seperately.

[Amethyst]

Re: Secured loan and transfer of equity

When you remove a party from a mortgage and add a new party to an agreement it would be a transfer of title.

To add or remove someone from your mortgage, you can call one of our mortgage agents. Adding or removing someone from the mortgage is called a 'Transfer of Title'.

When adding someone to your mortgage, the Transfer of Title request will be treated as an application for another person to be added. We will assess the party with regards to affordability, account conduct and credit scoring. For example, if someone is to be removed from a mortgage, we will check that the person remaining on the account can afford to pay it.

Although from what you say you have actually remortgaged completely - basically a new mortgage, with the affordability criteria and checks as if you were moving house. So new terms, length of time to repay the mortgage etc. Has that all gone through okay or have you just been accepted in principle ?

Is there enough equity in the property value to cover that second charge ?

Was the Welcome loan originally in just your name ?

[Mrscurious]

Re: Secured loan and transfer of equity

When you remove a party from a mortgage and add a new party to an agreement it would be a transfer of title.


Although from what you say you have actually remortgaged completely - basically a new mortgage, with the affordability criteria and checks as if you were moving house. So new terms, length of time to repay the mortgage etc. Has that all gone through okay or have you just been accepted in principle ?

Is there enough equity in the property value to cover that second charge ?

Was the Welcome loan originally in just your name ?

I was accepted and going through the actual application. They are satisfied with everything. The loan was both in mine and my ex's name.

There is enough equaty. So you think they will give me that option?

[Amethyst]

Re: Secured loan and transfer of equity

To increase the amount of the mortgage by an amount to pay off Cabot (Welcome) and have the second charge removed ? They may do if affordability checks and equity in the property allow it.

[onlinephone]

Re: Secured loan and transfer of equity

When you remove a party from a mortgage and add a new party to an agreement it would be a transfer of title.


Although from what you say you have actually remortgaged completely - basically a new mortgage, with the affordability criteria and checks as if you were moving house. So new terms, length of time to repay the mortgage etc. Has that all gone through okay or have you just been accepted in principle ?

Is there enough equity in the property value to cover that second charge ?

Was the Welcome loan originally in just your name ?

Exactly what i thought about loan equity. Well said amethyst.