Key Points
- You can add someone to a mortgage through a legal process called Transfer of Equity, which requires your lender’s approval and typically involves remortgaging.
- Adding a person to your mortgage means they become jointly liable for repayments, and both credit histories will be assessed by the lender.
- There are potential tax and stamp duty implications to consider before going ahead, so professional advice is strongly recommended.
Whether you’ve recently moved in with a partner, want to bring a family member onto the property ladder, or need help meeting your monthly repayments, you may be wondering: can you add someone to a mortgage?
The short answer is yes; however, it’s not as straightforward as simply adding a name to a document.
This guide will walk you through everything you need to know about how to add someone to a mortgage in the UK, from the legal process involved to the costs you can expect.
Why Might You Want to Add Someone to a Mortgage?
There are several reasons why a homeowner might want to add someone to a mortgage:
- Relationship changes – Moving in with a partner and wanting them to share legal ownership of the property.
- Financial support – Adding a parent or family member to help improve borrowing power or reduce monthly payments.
- Inheritance planning – Bringing a child onto a property as part of an estate strategy.
- Affordability – Combining incomes to qualify for a better mortgage deal or remortgage rate.
It’s worth noting just how common joint mortgages are in the UK. According to data from MortgagePro, 42% of UK mortgages are joint applications, with 65% of those between married couples, 18% between unmarried couples, and 17% involving family members or friends.
How Do You Add Someone to a Mortgage?
The legal mechanism for adding someone to a mortgage is known as a Transfer of Equity. This process, as the name suggests, transfers a share of the property’s ownership to the new person, making them a co-owner and a co-borrower.
Here’s a general overview of how it works:
1. Notify your lender
Your first step is to contact your existing mortgage lender and let them know you want to add someone to a mortgage. The lender will need to approve the new arrangement, as it changes the financial risk profile of the loan.
2. New affordability assessment
The lender will run a fresh affordability check. This means both you and the person you’re adding will be credit-checked and assessed on income, outgoings, and financial commitments. This is no different to a standard joint mortgage application.
3. Legal work via a solicitor
You’ll need a solicitor to handle the Transfer of Equity. They’ll update the Land Registry title deeds to reflect the change in ownership and ensure the legal transfer is valid.
4. Remortgaging
In many cases, adding someone to a mortgage triggers a remortgage. This can actually be an opportunity to review your current deal; however, be aware that early repayment charges may apply if you’re in a fixed-rate period.
Because of this, it’s always best to speak to a mortgage advisor who will talk you through the process and ensure you’re making the best financial decision.
Joint Ownership: Tenants in Common vs Joint Tenants
When you add someone to a mortgage and the property title, you’ll need to decide how you hold the property together. There are two main options:
Joint Tenants
Both parties own the property equally. If one person dies, their share automatically passes to the surviving owner. This tends to be the most common arrangement for married couples.
Tenants in Common
Each party owns a defined share (e.g. 60/40 or 70/30). Each person can leave their share to whoever they choose in their will. This is often more appropriate for friends, family members, or unmarried couples with unequal contributions.
Will Lenders Always Approve Adding Someone to a Mortgage?
Unfortunately, it’s not guaranteed that your lender will accept a new applicant on your mortgage.
When you ask to add someone to a mortgage, lenders will want to ensure the new arrangement is financially sound just as they did when you applied for your mortgage in the first place. The key factors that they’ll assess include:
- The new applicant’s credit history: any missed payments, defaults, or CCJs could affect approval. (You can check your credit via this link)
- Combined income and whether it comfortably covers the mortgage repayments.
- The loan-to-value (LTV) ratio, lenders may be stricter if the mortgage is already at a high LTV.
- Whether both parties pass an affordability check.
It’s also worth noting that adding someone to a mortgage creates a financial link between you on your credit files. This means their financial behaviour will have an impact on your own creditworthiness going forward.
Are There Any Costs to Add Someone to a Mortgage?
Adding someone to a mortgage isn’t free, so if it’s something you want to do, you should budget for the following:
– Solicitor fees – Typically between £100 and £500 for a Transfer of Equity; however, this can vary.
– Land Registry fees – A fee is payable to update the title deeds. This varies based on the property value.
– Lender arrangement or remortgage fees – If a new mortgage deal is required, you may face arrangement fees from the lender.
– Early repayment charges (ERCs) – If you’re mid-deal on a fixed rate, your lender may charge a penalty for switching early.
What About Stamp Duty?
Stamp Duty Land Tax (SDLT) can apply when you add someone to a mortgage, depending on the circumstances. If the new person is taking on a share of the mortgage debt, HMRC may treat this as a property transaction. The amount of stamp duty owed depends on:
– The value of the share being transferred.
– Whether the new applicant already owns another property (the higher 3% surcharge may apply).
– Whether the transfer counts as a chargeable consideration in HMRC’s eyes.
This is a particularly important area to take professional advice on, as stamp duty rules can be complex. Speaking to a professional, whether that be a solicitor, mortgage broker, or tax adviser, before you add someone to a mortgage could save you a significant amount of money.
Things to Consider Before You Add Someone to a Mortgage
Adding someone to your mortgage is a big deal, so before going ahead, it’s worth thinking through some important questions.
– What happens if the relationship breaks down? Removing someone from a mortgage is also possible but involves a similar legal process, and both parties must agree (or a court must order it).
– Do you both understand your joint liability? Both parties are 100% liable for the full mortgage debt. If one person stops paying, the other is responsible for the whole amount.
– Have you both taken independent legal advice? Solicitors will often recommend this to ensure both parties fully understand what they’re agreeing to.
– Could it affect first-time buyer status? Even if one person on a joint mortgage has previously owned property, the entire application loses first-time buyer stamp duty relief.
Final Thoughts
Whether it’s a partner, a parent, or a friend, it is possible to add someone to a mortgage; however, it’s a significant legal and financial decision that affects both parties’ credit files, tax position, and long-term financial security.
Before you take the plunge, speak to a qualified mortgage broker who can assess your options, compare lenders, and guide you through the process from start to finish. Getting the right advice early can make the whole experience far smoother, and much less costly.
