In the past few years, when property prices were at their peak, it was not easy for many people to buy a property on their own. Therefore, many people tended to buy properties together with their spouses or siblings. This naturally helped to reduce the monthly payment. It can also reduce the financial pressure of the landlord and save a lot of inconveniences that may be encountered during meetings, such as problems such as insufficient income of one party. However, in recent years, due to various reasons, property owners may be unable to withstand the pressure of falling property prices; they are also bearish on the market outlook and want to "quit playing"; or due to immigration factors, etc., the original two borrowers have no choice but to There is only one left. In this case, what can the remaining party who wants to continue paying for the property do?
No matter what factors cause one of the owners to withdraw, it makes no difference to the bank. The most important thing for the bank is to confirm whether the owner has sufficient repayment ability. If the owners originally purchased the property in joint names and one of them withdraws, the other party will have to refinance the mortgage.
The owner can re-apply for a mortgage with the bank that is still making payments, or transfer the mortgage to another bank. No matter which method the owner chooses, the bank will revaluate the property, which means that the party who "stays" needs to Only after passing the bank's income requirements and other examinations can a mortgage be approved. Therefore, the remaining owners must ensure that they have sufficient income conditions; otherwise, they must find a guarantor for assistance.
Mortgage review is more relaxed
The mortgage discounts offered by large banks now are completely different from those a few years ago. Not only will there be no high-interest Mortgage Link accounts, there may not even be any loan cash rebates. Therefore, the author recommends that applicants who need to remortgage and change their name should try to avoid only looking for large banks to inquire about remortgage, and pay more attention to the offers provided by smaller banks. The reason is that in addition to some banks doing remortgage. Cash rebates are still available to help owners.
Another reason is that due to rising interest rates, it is not easy for applicants to meet the bank's income requirements on their own. The mortgage review process of small banks is "looseer" than that of large banks. These are also the benefits of choosing a small bank to switch to a mortgage.
Negative equity cannot be used to remortgage
However, before deciding to remortgage and dump the name, the owners must make certain preparations. In addition to ensuring that the income income can meet the bank's requirements, another factor to pay attention to is the value of the property.
Since the name needs to be re-mortgaged, the bank will re-appraise the property. If the property was purchased with a high-percentage mortgage during the peak period of property prices a few years ago, there is a high chance that the property will be re-valued and faced with the property revaluation. Falling prices cause a problem of undervaluation, that is, negative equity. At that time, the owner must make up the difference to the bank before remortgaging.