Can I Add Someone to My Right to Buy Mortgage?

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If you’ve bought your council home through the Right to Buy scheme, you might be wondering whether it’s possible to add someone to your mortgage later on. This situation often arises when personal circumstances change, such as marriage, entering a civil partnership, or simply wanting financial support with repayments. In this article, we’ll clearly explain whether you can add someone to a Right to Buy mortgage, how it works, and what steps you might need to take.

Table of Contents hide

1 Can I Add a Person to a Right to Buy Mortgage?

2 How to Add Someone to a Right to Buy Mortgage

3 Can Adding Someone Affect Your Right to Buy Discount?

4 Things to Consider

5 FAQs

Can I Add a Person to a Right to Buy Mortgage?

Yes, generally speaking, you can add another person to your Right to Buy mortgage. However, there are important conditions you should consider. First, you’ll need your mortgage lender’s permission, as they will want to check the new person’s credit history and affordability.
You’ll also need approval from the local council or housing authority that granted your Right to Buy. This is because, typically, there’s a restriction on your property title for a certain number of years after the purchase, often known as the pre-emption or discount repayment period (usually five years). During this time, you’ll likely need council consent before changing ownership or adding a new person to your mortgage or deeds.

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How to Add Someone to a Right to Buy Mortgage

Here’s a simple breakdown of how the process usually works:

Speak with Your Mortgage Lender

Before making any decisions, talk directly with your mortgage provider. Explain clearly why you want to add someone—such as your spouse or partner—to your mortgage. They will likely require details about the new individual’s income, debts, credit history, and employment situation.

Approval from Your Local Council

Since your home was purchased under the scheme, your local council will need to approve any change to your property’s ownership. Usually, councils allow this as long as you meet certain conditions, such as ensuring that you remain living in the property and aren’t immediately transferring the property ownership entirely.

Legal Advice and Paperwork

You should seek professional legal advice. A solicitor will handle the paperwork required by your lender and local council, ensuring everything is accurate. The solicitor also updates the Land Registry records, officially adding the new person’s name onto the deeds of the property.

Can I Add Someone to My Right to Buy Mortgage in the UK?

Can Adding Someone Affect Your Right to Buy Discount?

If you add someone within the first five years of buying your home, it’s important to be aware of your original discount terms. If the property is transferred or partially transferred within this initial period, you might be required to repay a proportion of the discount you originally received. Always check this directly with your council or housing authority to avoid unexpected charges.

Things to Consider

Financial Responsibility: Remember, when you add someone to your mortgage, they’re equally responsible for repayments. Make sure you’re comfortable sharing financial responsibilities long-term.
Impact on Credit Score: Your credit files will become linked, so it’s vital to understand and trust the other person’s financial stability.
Future Plans: Consider future scenarios such as separation or divorce. It can be complex and costly to remove someone from your mortgage at a later date.

FAQs

Can I add a family member or friend to my existing Right to Buy mortgage?

Yes, you can typically add a family member or friend to your Right to Buy mortgage. However, this process requires approval from both your mortgage lender and your local council. The new person must meet the lender’s criteria, including creditworthiness and affordability assessments.

Will adding someone to my mortgage affect the ownership of my property?

Yes, adding someone to your mortgage usually involves adding them to the property’s title deeds, making them a joint owner. This change means both parties share legal ownership and responsibility for the property. GOV.UK

Do I need to inform my local council?

Yes, it’s essential to inform your local council, as they must approve changes to the property’s ownership, especially during the pre-emption period (usually the first five years after purchase). Failing to obtain council consent could lead to complications or potential breaches of your Right to Buy agreement.

Could adding someone to my mortgage impact my discount?

Potentially, yes. If you add someone to your mortgage and property deeds within the initial discount repayment period (typically five years), you might be required to repay a portion of the discount received. It’s advisable to consult your local council to understand any financial implications.

What are the financial responsibilities of adding someone to my mortgage?

When you add someone to your mortgage, both parties become jointly responsible for mortgage repayments. This joint liability means if one person cannot pay, the other must cover the full amount. It’s crucial to discuss and agree upon financial commitments before proceeding.

How does adding someone to my mortgage affect our credit histories?

Adding someone to your mortgage links your credit histories. This connection means future credit applications may consider both individuals’ financial behaviours. If one person has poor credit, it could negatively impact the other’s ability to obtain credit.

What steps should I take before adding someone?

Consult Your Mortgage Lender: Discuss your intentions with your lender to understand their requirements and ensure the new party meets their criteria.
Seek Legal Advice: Engage a solicitor to handle the legal aspects, including updating the property’s title deeds and ensuring compliance with all regulations.
Inform Your Local Council: Obtain necessary approvals from your local council to avoid breaching any terms of your Right to Buy agreement.
Evaluate Financial Implications: Consider how this change affects mortgage repayments, ownership shares, and potential tax liabilities.

Are there alternatives to adding someone to my mortgage for financial assistance?

Yes, alternatives include:
Guarantor Mortgages: A family member or friend guarantees your mortgage repayments without being added to the title deeds.
Family Springboard Mortgages: Some lenders offer products where family members provide financial backing, such as placing savings into an account linked to your mortgage, to assist without becoming co-owners.

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