Transferring a mortgage to a family member: A UK guide

In the UK, transferring a mortgage is typically done through what is known as a “transfer of equity”. This is a legal process that changes the legal ownership of a property, usually by adding or removing someone from the title deeds, which then affects who is responsible for repaying the mortgage.  

What is a transfer of equity?

In a transfer of equity, the registered ownership of a property is legally changed. Unlike buying or selling a home outright, it usually involves adding or removing one or more people from the property title while at least one original owner remains. A maximum of four owners can be registered on a title deed.

Common scenarios include:

  • Adding a spouse or partner after marriage.
  • Gifting the property to a child to reduce inheritance tax.
  • Removing a spouse or partner after separation or divorce.
  • Transferring a joint ownership which was used to help someone get on the property ladder to a single ownership

When a property also has a mortgage, the lender must approve the change, and anyone added will also become legally responsible for repayments. 

How to transfer a mortgage to a family member

The transfer of equity can be complex, especially when a mortgage is involved, and it is generally advisable to use a conveyancer to handle the process.

When you want to transfer a property with a mortgage, your lender plays a central role. If someone is added, they need to be satisfied that they can afford the loan, and if someone is removed, the remaining borrower must be able to handle repayments by themselves. The process can vary depending on whether you are adding or removing someone.

Adding someone to a mortgage

To transfer a mortgage to another person by adding someone is essentially like creating a new joint mortgage. Both parties become jointly liable to make repayments, meaning the lender will hold either borrower responsible for the full amount if payments are missed. 

The process will typically include:

  • Sending the application to the lender – When a person is added to the mortgage, this is treated as a new mortgage. You can either remortgage with the existing lender by changing to a different rate or remortgage with a new lender.
  • Affordability checks – The lender will assess both applicants’ income, expenses, debts, and credit history to ensure you can share responsibility for the repayments.
  • Legal process – If the lender approves, a solicitor must then carry out the transfer of equity so the new person is added to the property title and the mortgage.
  • Notify the land registry – The land registry will then be notified about the title deed change. Read more: Having a joint mortgage in the UK

Removing someone from a mortgage

Removing someone is usually more challenging than adding someone, since the lender needs to be confident that the loan can still be repaid by the remaining person(s). The process includes:

  • Affordability reassessment – The lender will review whether the remaining borrower(s) can afford the mortgage on their own. This means providing updated income evidence and undergoing affordability tests for the new amount.
  • Credit checks – The lender may run new credit checks to confirm that the person staying on the mortgage is financially stable enough to carry it on their own.
  • Consent and legal process – The person being removed must give written consent, to complete the transfer of equity and update the property title and mortgage deed.
  • Possible remortgage and buyout – In many cases, removing someone requires a full remortgage into the sole name of the remaining borrower. This is because you need to resolve the debt before leaving the mortgage. 

Where an equity is being divided, such as in a divorce, the person keeping the property may need to arrange a “buyout.” This is done by remortgaging to release equity and using the equity to pay the other party their share. Once this is done, the sole owner will then need to bear the cost of repaying the new mortgage, which includes the amount left on the previous mortgage and the amount paid for the buyout. Lenders will need to assess that the new owner can handle this large amount.

  • Legal processes and notifying the land registry – similar to adding someone, your solicitor will carry out the transfer of equity by preparing transfer documents and notifying the land registry

Read more: What happens to my mortgage if I am getting a divorce

Gifting a mortgaged property

Gifting a mortgaged property is slightly different from a standard transfer of equity because it involves transferring ownership as a gift without receiving money for their share of the equity.

How it works

  1. Lender Consent
    Because the property is mortgaged, the lender must agree. Usually, the recipient will need to remortgage to restructure the debt and release the other party.
  2. Legal Transfer
    A solicitor will prepare the transfer deed, clearly stating that the property is a gift and register it with the HM Land Registry.

Pros and cons of transferring a mortgage

Pros

  • Flexibility in ownership: Share responsibility for the property.
  • Estate planning:  Pass wealth to the next generation and reduce inheritance tax.
  • Improved affordability: Additional borrowers can help meet lender requirements and get better rates.

Cons

  • Fees and tax liabilities: There are legal fees, lender/admin charges, and possibly Stamp Duty Land Tax (especially in buy-outs), which need careful consideration.
  • Loss of control: Shared ownership requires agreement on decisions.
  • Mortgage costs: remortgaging and buyouts can come at a higher cost

What to consider before you transfer

Transferring a mortgage to a family member can be a practical and beneficial step, offering flexibility during life changes, keeping property within the family, and even improving affordability when incomes are combined. In fact, transfer of equity is a common practice in the UK for inheritance planning, or helping younger family members onto the property ladder.

That being said, it is important to consider all aspects of costs and risks of undertaking a transfer. Costs involve legal fees, lender charges, Stamp Duty Land Tax in some cases, and potential remortgaging costs. Lenders could also apply strict affordability and credit checks, which can affect the outcome.

As an alternative, a transfer may also be done by selling the property outright to the new borrower. This is a more definitive change, which effectively resets the mortgage and can sometimes be a simpler option, depending on circumstances.

Conclusion

Ultimately, when considering a transfer of equity, like all financial undertakings,  the key is to balance the potential benefits with the legal, financial, and personal implications before proceeding. Taking professional advice from both mortgage brokers and solicitors will ensure the process is as smooth and cost-effective as possible.

Disclaimer: The information provided in this blog is intended for general knowledge and informational purposes only, and does not constitute financial advice.

YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

BVS Mortgage & Financial Services Ltd is an appointed representative of The Openwork Partnership, a trading style of Openwork Limited which is authorised and regulated by the Financial Conduct Authority.

BVS Mortgages & Financial Services Ltd is a broker, not a lender. We work within the mortgage market and may earn a commission from lenders, this amount varies between lenders.

Approved by The Openwork Partnership on 24-09-2025.

Published on 2025/09/26