Transfer Mortgage To Another Person: What Is It & How To Get It Done

Find out how we can help you get a mortgage today

Our Customers rate us 4.6 out of 5


Changes in your life’s affairs are unavoidable, and for many people, they include altering the ownership status of their homes. Whether it’s a serious relationship, a divorce, reaching that age where you need to plan for your family’s future, or the death of a loved one, various circumstances will inevitably get you to consider a mortgage transfer.

You may be looking to add or remove your spouse/partner from your mortgage, add your children to your property’s owners’ list, or give them full ownership. So, can you transfer a mortgage to another person?

This is a common question among house owners, and while the short answer is yes, there are a lot of details to this process to understand. We’ve put together this handy guide to explain everything you need to know about mortgage transfer in simple terms.

Today, we’re walking you through what transferring a mortgage means, examples of mortgage transfer, the involved checks, the due costs, the steps to follow, and more. Once you have better knowledge of mortgage transfer, we’re happy to assist with any further action.

What Does It Mean To Transfer A Mortgage?

When you take a loan to buy a home, the mortgage represents a legal agreement between you and a lender. The lender provides the funds so you can purchase the house in full, and after that, you pay back the lender over a certain period with an interest rate.

The mortgage can involve single or multiple parties alongside the lender. It’s possible to add, remove, or replace a person in an existing mortgage agreement. If you decide you want to do any of that, it will happen through a process referred to as a mortgage transfer.

Once complete, the person(s) to whom the mortgage was transferred will become responsible for upholding the terms and rates of the mortgage agreement with the lender.

Is A Transfer of Mortgage The Same Thing As A Transfer of Equity?

The term ‘transfer of equity’ often comes up when talking about a transfer of mortgage. Does this mean they represent the same thing?

Equity is what we legally call a person’s share in a property that they own. It specifically refers to the market value of the house after subtracting any mortgage that still needs to be paid off. This means that if your house is valued at £300,000 and your mortgage still has £100,000 left, then you own an equity of £200,000 in the property.

If you want to modify the ownership of your equity by adding, removing, or replacing someone on the title deed, it will happen through a process referred to as an equity transfer.

Once complete, the person(s) to whom the equity was transferred will become fully responsible for upholding the terms of the mortgage agreement with the lender.

Sounds familiar, right? That’s because it’s the same thing as a transfer of mortgage.

What Scenarios Fall Under A Mortgage Transfer?

A transfer of mortgage – also known as a transfer of equity – includes several legal events under its umbrella. To make things clearer, we’re going to discuss the possible scenarios that are considered a mortgage transfer via the following commonly asked questions:

Does Changing a Joint Mortgage Into A Sole Mortgage Require A Transfer Of Mortgage?

Yes, a scenario that involves turning a joint mortgage with multiple owners into a mortgage with a single owner is classified as a mortgage transfer.

One example of this is when a married couple or civil partners decide to end the relationship and one of the two moves out of the property. The person still living in the house can become the sole owner and upholder of the mortgage by buying out the other party.

Is Changing A Sole Mortgage Into A Joint Mortgage Considered A Mortgage Transfer?

Yes, a situation where a sole mortgage is to be turned into a mortgage with multiple owners is categorised as a transfer of mortgage.

Opposite to the previous scenario, an example of this is when two people get married or enter a civil partnership and they live together. The person who is the current owner can share ownership with the other person by adding them to the mortgage agreement.

Is Passing Whole Ownership To A Family Member Classified As A Transfer Of Mortgage?

Yes, passing full ownership of a house to a family member(s) is an example of a mortgage transfer. Typically, this is done to manage inheritance tax within a long-term estate plan.

What About Tenants In Common?

If a mortgage has multiple owners –for example, members of the family– then they’re tenants in common. If they decide to transfer the whole ownership to just one of the part owners, the process will involve more than a mortgage transfer.

If the part owner who’s to become the sole owner won’t pay anything to the other owners, then the former has to sign a document known as ‘Statutory Declaration as to Equitable Title’. It declares that one person is the only owner of the house, and so, they’re the sole party with responsibility to fulfil the mortgage.

Does A Mortgage Transfer Include Passing A Part Of Ownership To A Family Member For Free?

Yes, giving a family member a share of property ownership without the new owner paying the existing owner(s) is an example of a mortgage transfer. This is specifically referred to as a gift equity transfer.

How To Kickstart A Mortgage Transfer

The first thing you need to do to start the process of transferring a mortgage is inform your current lender of your decision and ask for their consent. Things will go a lot smoother that way.

Assuming the lender is on board with your request, they’ll run eligibility checks on the new owner to make sure they meet the liability terms and can assume equal responsibility for the mortgage agreement. These checks may include;

  • Income
  • Credit history
  • Affordability
  • Current equity
  • Reasons for the transfer


After the lender completes their assessment of the new owner, they’ll follow it up with a remortgage to add or remove parties as needed. The process also involves filling in a TR1 Land Registry form with the details of the current and new owner(s) and presenting copies of the house’s title deed and the original mortgage agreement contract.

What Would Prevent A Mortgage Transfer?

Before we get into the steps of a mortgage transfer, you should be familiar with the reasons that could keep a transfer of mortgage from going through. These include;

  • Failing the lender’s eligibility assessment
  • A person who was a previous party on the mortgage remains living at the property
  • The house is buy-to-let and the new owner wants to move in
  • The mortgage involves more than three borrowers

What Fees Does A Transfer of Mortgage Involve?

Among the fees associated with a mortgage transfer, stamp duty usually makes up the biggest chunk. You’ll have to pay this if the mortgage transferred is valued at or over £125,000.

Other than the stamp duty, you may be liable for lender fees and legal fees. Lender fees may consist of administrative costs, a penalty, and/or an early settlement charge. Legal fees cover the cost of hiring the services of a conveyancer as well as the land registry change, ID verifications, and property title extraction.

What Are The Main Steps Of Transferring A Mortgage?

Here’s an outline of how the process of a mortgage transfer works:

  1. Initiating a remortgage with your current lender as explained above, or entering a new mortgage agreement with another lender.
  2. Seeking the services of a conveyancer who’ll take care of the legal paperwork. If you’re adding an owner, the same conveyancer can represent you both.
  3. Verifying the identity of all the parties involved in the mortgage, whether entering or leaving. If there’s an exchange of money to be conducted, verifying the financial sources is also necessary. The conveyancer typically handles this step.
  4. The signing of the new mortgage agreement by all the involved parties and overseeing any money transfers. Signing an ID1 form is required for owners who are leaving.
  5. Paying the required fees and delivering the new house ownership details to the land registry.

Transferring A Mortgage To Another Person FAQs

Here are some questions that we’re regularly asked by clients looking to transfer a mortgage to someone else:

What Is The Difference Between Transferring A Mortgage & Porting A Mortgage?

Many people confuse transferring a mortgage and porting a mortgage to be the same thing. But these are two different processes. Transferring a mortgage alters the ownership parties of the same property, however, porting a mortgage moves the mortgage agreement to another property while keeping the ownership unchanged.

Do I Need A Broker For A Mortgage Transfer?

You’re not obligated to hire a mortgage broker to manage the process of a mortgage transfer, but it’s a valuable investment.

A broker will have a deep understanding of all the regulations and legal jargon surrounding this process, so they’ll ensure everything is done correctly and protect you from being taken advantage of. They’ll also provide you with the best mortgage deal on the market and take the stress off of you during what may be a tough time.

How Does A Gifted Mortgage Transfer Affect Inheritance Tax?

There are several ways in which a mortgage transfer can impact inheritance tax, but they all lead to a smoother passing of the property with minimal -if any- inheritance tax involved.

Can Bad Credit Stop A Transfer of Mortgage?

Bad credit may prevent a transfer of mortgage if the issues are too severe or too recent. Contact us for a more accurate answer.


Table of Contents

Emma Jones
Emma Jones
Emma began her career in Lloyds Banking Group, first in the unsecured & secured loans department at Halifax and later as a mortgage advisor at Lloyds. During 9 years in these roles and a further 2 years at Yorkshire Building Society, Emma was able to observe the impact of the recession, and how the banks let their customers down by denying loans and mortgages. Wanting to be a driving force for change, she stepped into a market advice role where she has been able to help clients when others couldn’t. Identifying a gap in the mortgage space, Emma went on to establish When the Bank Says No. As a keen property investor, she has been the focus of features in publications including The Sunday Times and This is Money. Emma’s greatest joy is overcoming the low expectations of their customers, many of whom have all but given up on getting a mortgage due. One thing Emma has learned through her own personal struggles is every client must be treated like a human and understood better by advisors and lenders in the industry. “We all have to navigate life events which can ultimately impact your financial status. It shouldn’t mean dreams of homeownership or business growth should have the breaks applied”. Emma and her team’s passion for helping people overcome the challenges they may face when applying for a mortgage have fuelled the success of When the Bank Says No.

Our Customers rate us 4.6 out of 5


Start your mortgage journey today

Speak to one of our expert advisors.