Removing name from mortgage - advice needed

FionaFitz

New Member
Messages
6
Hi

I had a family member be a joint name on my mortgage, however I am the sole name on the title. In my letter of offer it states that after the mortgage goes below €223k I will be able to remove that person from the mortgage - see attached relevant part of the letter of offer.

I emailed AIB asking what the next steps would be last week and they sent a letter today advising that I would need to apply for a new mortgage in my sole name.

I may be wrong but from my offer letter it does not say anything about applying for a new mortgage

Any ideas/advice?

Thanks
 

Attachments

Last edited:

mf1

Frequent Poster
Messages
4,353
There may be a caveat somewhere in the formal Letter of Offer that allows the Bank to review the original terms.

Probably best to ask your solicitor to review what you have and contact the bank on your behalf.

mf
 

Muddle2018

Frequent Poster
Messages
77
Yes it is basically you remortgaging your own home with yourself. I went through it last year when removing my ex husband from my mortgage. You go through the entire process of applying for the mortgage all over again but with your letter then it should be just a formality like mine was. Pain in the Please read the Posting Guidelines but worth it long term.
 

Thirsty

Frequent Poster
Messages
2,644
To clarify the previous post you didn't 'remove' a name.

You are redeeming (paying back) a mortgage that was in joint names.

Unless you have a significant lump sum, most people do this by borrowing. Your new mortgage is in your sole name.
 

Muddle2018

Frequent Poster
Messages
77
Yes basically my bank, KBC, paid off the old mortgage while giving me a new one, releasing my ex finally from the mortgage and subsequently he was removed from the deeds too. Best day of my life!
 

newinvest

Registered User
Messages
39
I went through this last year with AIB. It was torture, mainly because it took them 8 months and each week they would say “next week”. They kept on coming back looking for more information, lost some information, etc. Incompetence in the extreme. I ended up remortgaging with PTSB, which took 4 weeks start to finish. I lodged an official complaint with AIB and received €100 compensation.
 

1 step forward

New Member
Messages
7
Why 223k? Was this the figure you could have borrowed as a sole applicant at the time based on your financial circumstances? Was it a case anything above that was deemed outside of your repayment capacity unless the 2nd party's income was calculated? The banks normal operation would be to assess an applicant under their criteria at a point in time. If years have passed they would need to ensure that your financial circumstances remain unchanged / improved since the original application whereby they identified your repayment capacity was of the 223k limit. ( which im only assuming is where that figure came from) so in effect yes it's like a whole new application/ assesment and if successful a new account is opened up in your sole name with the new funding used to pay off the old joint account and shut it down. If your financial circumstances have remained unchanged or improved and there has been no missed payments you should not worry. However like most dealings with bank it can be cumbersome. What I would say though is it doesn't refer to any of this in the excerpt you displayed but it would be unusual that it is not mentioned anywhere else in the document , so worth getting it looked over by someone in the know.
 

Brendan Burgess

Founder
Messages
41,748
I emailed AIB asking what the next steps would be last week and they sent a letter today advising that I would need to apply for a new mortgage in my sole name.

I may be wrong but from my offer letter it does not say anything about applying for a new mortgage
Their letter is clear that you need an account in your own name.

4881


Why don't you just apply for this new mortgage? If they refuse, then you might well have a complaint.

Or are you on a tracker? If you are on a tracker, I think you could argue that they did not alert you to the fact that you would lose your tracker and you should insist on keeping it.

Brendan
 

October2019

Registered User
Messages
115
Yes it is basically you remortgaging your own home with yourself. I went through it last year when removing my ex husband from my mortgage. You go through the entire process of applying for the mortgage all over again but with your letter then it should be just a formality like mine was. Pain in the Please read the Posting Guidelines but worth it long term.
Hi Muddle18. Were there any tax implications here? As in gift tax. ?
 

Muddle2018

Frequent Poster
Messages
77
So sorry I am only getting back to you now. No taxes at all. Fairly straight forward really as in our divorce the judge granted me the house as he never paid towards it so it was just a question of when the bank were willing to remove his name but instead of just taking his name off the mortgage I had to go through an entire new mortgage process and even have a new mortgage agreement number etc. No taxes, no stamp duty etc but I did have to pay a conveyancing solicitor.
 

dubdub123

New Member
Messages
8
After my divorce, we went through a transfer of equity process, and I had to show evidence that I had capacity to repay mortgage. It took quite some time as paperwork was lost by KBC, then I moved jobs and had to hold off til I was permanent in that position. Had legal fees to pay as well at the time of a few grand. But now I'm sole person no mortgage and deeds.
 
Top