3 way mortgage-buy other 2 out?

I may be wrong, but I think you may have difficulty in getting your friends names off the mortgage while you are still in NE.
 
I rang Ulster Bank a few times on Monday. They must have a Scottish call Centre but eventually got through to somebody in my local branch who said someone will call me back re: our situation. So hopefully, they'll call soon.
 
As I have now said a few times, fix the problem from now on. It looks like your distribution should be something like this, which is close to what you are doing

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But get that agreement from your co-owners.

Then work it backwards. But it sounds as if you are about evens on rent and mortgage repayments.

Brendan
 
Thanks for that Brendan. Whats your opinion on the possibility of getting the other 2 off the mortgage and my wife on to it,now that it seems the house is in NE? Our combined income is easily good enough to handle repayments. Would they dismiss it now?
 
Hi ce

Wait until you hear from UB. There is no point in wasting time wondering what they might say.

If they refuse, or set unacceptable conditions, report back and we can explore other options.

Brendan
 
Ulster bank rang yesterday. They can do a tracker porting but interest will go up from 1.15 to 2.5% and stays like that for 10 years then reverts to SVR. Don't think we'll be going for that....
 
As you say, there is no advantage to any of you from you buying out the house and moving to 2.5%.

If your partners agree, you can do a side agreement. Your relationship with UB does not change. The other two remain jointly and severally liable for the mortgage.

You take full responsibility for the mortgage and they give up their ownership rights. You pay the mortgage in full and they have no further involvement, unless you fail to make the mortgage repayments.

What's in it for them...
Not much, other than the payment you make to them now.
They remain liable for the mortgage and if you fall into arrears, their credit record is damaged.
They still have a loan, so their ability to borrow could be limited.

What's in it for you...
You get to own the house.
But you will have to pay them now for their share of the house.


This can work fairly well for family homes. Not sure what the tax implications would be for an investment property.

One solicitor told me that your partners can sell their interest in the home to you, while remaining on the mortgage. Another solicitor told me that this could not be done.

Brendan
 
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