When you originally bought a share in your home, you may have financed the purchase with a mortgage.
If you want to re-mortgage your home - because, for example, you need to release some capital or want to make improvements - then you’ll need to write to us first. As we’ve got a financial interest in your property, it’s important that we’re aware of, and agree to, any changes in your lender or any increase in how much you’re borrowing.
There are four reasons why you may want to re-mortgage:
- To remain with your current lender but take advantage of a better rate, without increasing borrowing.
- To move from your existing lender to another lender, without increasing your borrowing.
- To stay with your existing lender or change to another lender but to borrow more money to pay for improvements to your home*.
- To stay with your existing lender or change to another lender, and add or remove a person from the mortgage and lease.
We’ll need to know about your proposed re-mortgaging. We’ll also need to be informed about the proposed improvements to your home, before any works start:
- For home improvements such as a new kitchen, bathroom or flooring, send copies of quotes and invoices, plus professional installation certificates (for example, gas and electrical certificates).
- For more complex improvements such as extensions, you’ll need to provide planning permission, architect’s plans and our surveyor will probably need to visit you as well.
All re-mortgages will need to be approved by East Thames prior to completion.
You will incur some legal and administrative expenses as part of this process – see our Administration Charges leaflet for more information.
* This is known as further advances. This term applies to borrowing more money on your mortgage for purposes other than home improvements. We will normally not consider borrowing for debt consolidation or secured lending, as this increases the risk to your mortgage payments.
If you want to carry out alterations or improvements to your home you must apply to us first and get our permission before any works are started. Permission will not be unreasonably withheld, but we may have to carry out inspections or investigate further before we can make a decision.
Some schemes have communal heating systems and therefore a change to a bathroom or kitchen may require specialist advice. This is because such change could damage the system. If this happens you may be liable to repair the whole system, which is likely to be costly and could affect all properties within the building.
Transfer of equity
The process of moving from a joint mortgage to a sole name mortgage or vice versa is commonly known as a ‘transfer of equity’.
The first step in the process is to contact East Thames to assess if you still meet the criteria for a shared ownership property by adding or removing a person from the mortgage and land registry title. We can only agree to this if you meet the Homes and Communities Agency guidelines. If we approve this you will then need to gain permission from your mortgage lender. However please note that your lender is under no obligation to agree this change and may require a revaluation of the house.
For further information contact our Home Ownership Team on:
0300 303 7333 or Home.Enquiries@east-thames.co.uk