Helping Our Customer Remortgage and Remove an Ex-Partner
At Kerr & Watson, we recently helped a customer in Alton, Hampshire, who needed to remortgage their home, remove an ex-partner from the mortgage, and raise enough money to buy out their share of the property.
Situations like this can be challenging. Not only does the mortgage need to be affordable for the remaining owner, but the lender must also be comfortable with changes to the people named on the mortgage. In this case, our customer was concerned about whether they would be able to borrow enough money to complete the buyout while keeping their monthly payments manageable.
By taking the time to understand their circumstances and researching the available mortgage options, we were able to find a solution that met their needs and helped them move forward with confidence.
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The Customer’s Situation
Our customer was a 44-year-old self-employed individual living in a semi-detached property in Alton.
Key details included:
- Property value: £400,000
- Mortgage required: £225,000
- Mortgage term: 25 years
- Credit history: Good
- Employment status: Self-employed
- Existing property: Residential home
- Objective: Remortgage the property and remove an ex-partner from the mortgage
Following the end of a relationship, our customer wanted to retain ownership of the property. To do this, they needed to raise enough funds through a remortgage to buy out their ex-partner’s share while restructuring the mortgage arrangements.
In addition, the transaction involved removing one party from the mortgage and adding another person onto the application. This added another layer of complexity that needed careful consideration.
The Challenges
Every mortgage case is different, and this one presented several challenges.
Raising Enough Money to Buy Out an Ex-Partner
One of the biggest concerns was whether a lender would be willing to provide the level of borrowing required.
Although the property’s value supported the mortgage amount needed, lenders still had to be satisfied that the borrowing was affordable and sustainable based on our customer’s circumstances.
As a self-employed applicant, income assessment can sometimes be more detailed than for employed borrowers. Each lender has different ways of assessing self-employed income, which can have a significant impact on the amount available to borrow.
Ensuring the Mortgage Was Affordable
Affordability was another key consideration.
It is one thing to secure a mortgage that provides the funds needed to buy out an ex-partner, but it is equally important that the repayments remain manageable over the long term.
Our customer wanted certainty over their monthly payments and needed a mortgage solution that balanced borrowing requirements with affordability.
Changing the Parties on the Mortgage
The transaction also involved removing one person from the mortgage while adding another person to the application.
Not all lenders are equally flexible when it comes to these types of changes. The lender needed to assess the revised application and be comfortable with the new ownership and mortgage arrangements.
Finding a lender willing to support all aspects of the transaction was essential.
How We Helped
At Kerr & Watson, we began by reviewing our customer’s full circumstances, including their income, property value, borrowing requirements, and future plans.
As experienced mortgage brokers, we understand that cases involving relationship breakdowns, ownership changes, and remortgages often require a tailored approach rather than a standard mortgage solution.
After researching the market and assessing lender criteria, we identified HSBC as a suitable lender for the customer’s circumstances. HSBC could:
- Provide the borrowing required to buy out the ex-partner
- Support the removal of one party from the mortgage
- Allow another person to be added to the mortgage application
- Offer an affordable fixed-rate mortgage
- Meet the lender’s affordability requirements
By matching the case with HSBC and ensuring the application met their criteria, we were able to overcome the challenges and help our customer achieve their goal.
The Mortgage Solution
The mortgage solution secured for our customer included:
- Lender: HSBC
- Remortgage amount: £225,000
- Property value: £400,000
- Mortgage term: 25 years
- Product type: 5-year fixed-rate mortgage
- Interest rate: 4.74%
A fixed-rate mortgage provided the certainty our customer was looking for, allowing them to budget confidently knowing their monthly mortgage payments would remain the same for the fixed period.
This gave them stability during a significant life change and helped provide peace of mind for the years ahead.
The Outcome
The remortgage was successfully arranged, allowing our customer to:
- Buy out their ex-partner’s share of the property
- Retain ownership of their home
- Restructure the mortgage arrangements
- Secure an affordable mortgage payment
- Benefit from a competitive 5-year fixed rate
Most importantly, the customer was able to move forward with confidence, knowing they had achieved a solution that worked both financially and practically.
Customer Feedback
Our customer was extremely pleased with the outcome.
Before speaking with Kerr & Watson, they had been struggling to find a way to raise the amount required to buy out their ex-partner while still securing a mortgage that remained affordable.
By identifying HSBC as a suitable lender and presenting the case effectively, we were able to help them achieve a positive result.
The customer was particularly happy that they could secure the borrowing needed while benefiting from a competitive fixed-rate mortgage.
Why Mortgage Advice Matters
Cases involving a remortgage to remove an ex-partner, a transfer of equity, or changes to mortgage ownership can be more complex than a standard remortgage.
Different lenders have different criteria, and finding the right lender can make a significant difference to the outcome.
Working with a mortgage broker allows you to access expert guidance throughout the process, helping you understand your options and identify lenders that are most suited to your circumstances.
Whether you are:
- Looking to remortgage
- Buying out an ex-partner
- Completing a transfer of equity
- Self-employed and seeking a mortgage
- Looking for an affordable fixed-rate mortgage
Professional mortgage advice can help make the process smoother and more straightforward.
Conclusion
This recent case in Alton highlights how the right mortgage advice can help overcome complex circumstances.
Our customer needed to remortgage their property, remove an ex-partner from the mortgage, add another person to the application, and raise sufficient funds to complete the buyout. They were also keen to ensure the mortgage remained affordable.
After reviewing their circumstances and researching suitable lenders, we arranged the remortgage with HSBC, securing £225,000 against a property valued at £400,000 on a five-year fixed rate of 4.74%.
The result was a solution that allowed our customer to stay in their home, complete the ownership changes they needed, and move forward with confidence.
Need Help with a Remortgage or Transfer of Equity?
If you’re looking to remortgage, buy out an ex-partner, arrange a transfer of equity, or need advice on a self-employed mortgage, the team at Kerr & Watson can help.
We provide personalised mortgage advice tailored to your circumstances and work with a wide range of lenders to find suitable solutions.
Contact Kerr & Watson today to discuss your options and see how we could help you achieve your property goals.
