# Moving from joint to single mortgage and reduce term?



## Tempo66 (4 Aug 2020)

Hi,
First time posting. Found a similar thread to this from Dee1000 on 22 Nov 2019, but ours slightly different
Looking to change joint mortgage (2 couples) to sole ownership (1 couple).
House is our principal private residence since 2005.
Other couple had a 20% stake. We did a side agreement with them some years ago and they have no interest in the house now, but have just told us they need to get out of the mortgage.
Loan remaining c. €150k
Term remaining 10 years of a 25 year term
Original mortgage 340k. Market value of the house now c. €400k
Tracker is ECB +0.75%
My question is when I talk to lender, what should I be negotiating for in terms of a new rate?
We have one salary c €50k but we have been saving and have some inheritance, so we could offer to reduce the capital by €75k and possibly 100k. For various reasons we would like to reduce the length of the mortgage to 5 years.
Thanks very much for any help on this.


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## Brendan Burgess (4 Aug 2020)

Keep it simple. 

Apply to the lender to have the other couple's name taken off the mortgage. 

If you have a good credit record, they may allow this without any increase in rate. 

But it's not as simple as taking the names off the mortgage.  Presumably their names are on the deeds as well? In which case, you will have to get a solicitor to do the conveyance. 

If the lender agrees, then do that first and sort out the other issues afterwards.

Brendan


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## Brendan Burgess (4 Aug 2020)

Now let's assume that they refuse and tell you that you need to take out a new mortgage and you will lose your tracker. 

Don't lose any sleep over it. 

If the mortgage is reduced to €75k and you are paying 2.75% instead of 0.75% , it will cost you only €1,500 this year.

Over the 5 years, it will cost you about €3k to €4k.   So try to keep your tracker, but if they refuse, it's not the end of the world. 

Getting the others off the mortgage and the deeds is the highest priority.

Brendan


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## Tempo66 (4 Aug 2020)

Thanks Brendan for such a quick reply. I'll do that and see how we get on. 
To be honest I only assume the other couple's names are on the deeds since the mortgage was issued to all 4 of us. I assume the bank holds the deeds. I haven't seen them.


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## Brendan Burgess (4 Aug 2020)

It would be very rare to have 2 couples on a mortgage.  

I can't understand why they would be on the mortgage and not the deeds. Unless the other couple is your parents "guaranteeing" your mortgage.

Brendan


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## Tempo66 (4 Aug 2020)

No, not parents. Friends. 
I have the mortgage offer of advance etc and all 4 names on it. And all mortgage statements over the years addressed to all 4 of us.
So I assume all 4 names also on the deeds.


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## RedOnion (4 Aug 2020)

Tempo66 said:


> So I assume all 4 names also on the deeds.


You need to get a copy of the deeds, and you'll need legal advice. It could be complicated. It's possible that the other couple will need to transfer their share to you, which involves conveyancing, and each party will need their own solicitor. You  might have to pay stamp duty on the share you buy.


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## Tempo66 (4 Aug 2020)

When we did the side agreement with them we did it with legal advice and a written agreement. We bought the other couple out, including their share of the stamp duty. This is why they have no interest in the house now. But we also knew a side agreement did not change the fact that all 4 names still on mortgage. At that stage the tracker was invaluable.


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## Brendan Burgess (4 Aug 2020)

Hi Tempo

If their names were taken off the deeds as part of the side agreement, that is fine.   Your solicitor will advise you.

Usually a side agreement means that they agree to have their names taken off the mortgage and the deeds when it is allowed. 

Brendan


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## Tempo66 (4 Aug 2020)

So from initial contact it looks like 'No' you can't keep the current tracker, but likely, if meet criteria etc, to be able to move to their 10 year tracker which is ECB + 2%


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## Brendan Burgess (4 Aug 2020)

That is an excellent rate. 

It's only 1.25% more than you are paying.

On a €75k loan, it's only €1k 

And with only 5 years left, it will cost you about €2,500 extra. 

A small price to get their names of the deeds and mortgage.

Brendan


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## Muddle2018 (4 Aug 2020)

I got ex husband off mortgage and deeds last year by way of getting a new mortgage. I retained my tracker and was not subjected to paying stamp duty.


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## Brendan Burgess (4 Aug 2020)

It depends on the bank. They are under no obligation to facilitate you.

Tempo - which bank are you with? 

Muddle - which bank are you with? 

Brendan


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## Tempo66 (4 Aug 2020)

I'm with Ulster Bank


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## Muddle2018 (10 Aug 2020)

Sorry only seeing this now. I am with KBC


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## Muddle2018 (10 Aug 2020)

Also to add I was part of the tracker redress cohort so I think due to the fact I almost lost my home many moons ago as they were overcharging I think they would have given me almost anything I wanted at the time!


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