A mortgage is a long-term loan that is taken out for 20, 30 or more years. A lot can change in that time. Partners get divorced, you have to move abroad, your financial situation changes, etc. What should you do if you are paying off your mortgage and can no longer do so? Consider transferring the mortgage, or else transferring it to another person.
How to successfully remortgage?
A mortgage assignment is the transfer of a mortgage loan to another borrower. Nowadays, this is no longer uncommon and banks see it quite often. The reasons for this are usually the separation of partners, moving abroad, leaving the flat or house to the children, selling the house with the mortgage. But how to do it?
- Contact the bank and inform it of your intention
- The bank will check the creditworthiness of the person to whom you want to transfer the mortgage. It looks at their income, expenses and financial history.
- If the bank agrees to transfer the mortgage, it draws up an addendum to the mortgage contract, and nothing changes in its terms (interest rate, fixation, repayment period). Both the mortgage loan and the property covered by the mortgage are then transferred to the new owner.
What to do if you don’t have anyone you can transfer the mortgage to?
If you want to sell your house with a mortgage, you can also pay off the home loan or deal with a new mortgage loan. This also comes into play if you can’t find a suitable person to transfer the mortgage to. The new homeowner can then choose where to arrange the mortgage and on what terms.