Letter of Explanation of Relationship for Mortgage

June 23, 2022

A mortgage is a legal contract by which a person takes a loan usually to buy or build property on interest from the bank in exchange for the title of the property which is returned after the loan is paid back.

A mortgage is paid back in instalments which are decided in advance. The interest rate determines the amount that is to be paid. When people get married they often want to add their spouses to share the mortgage. Similarly, when people fall ill, they might include a sibling or their offspring in their mortgage.

In such cases, a letter is written to the bank to inform them about sharing the mortgage with another person. The purpose of this letter is to inform the bank that the person being named is trusted by the debtor and they can be trusted with all the mortgage details including information about the instalments paid and the amount pending etc.

Letters written in regards to your mortgage are very sensitive in nature just like all other financial issues and should be written very carefully after double checking all the facts and figures. There should be no grammatical or spelling mistakes.

Also, all the identity numbers, account numbers and other documents of the person being added to share the mortgage should be attached with the letter. The tone of the letter should be formal but polite. It should be kept brief, but no relevant detail should be left out.

Lastly, it should be addressed to the relevant authority to avoid ambiguity.

1

I had taken a mortgage from your bank, and I have been paying the instalments for the last two years. My remaining amount is [amount]. My amortization period is [number] years.

I got married in [year name] and I want to share the title of the property and the mortgage with my wife. Her name is [name] and identity number is [number]. She is an account holder in your bank. Her account number is [number].

I authorize you to give her full access to my mortgage account and provide her with any information she may require in this regard. I am attaching her full contact details. Please include her name in my mortgage account.

I want to assure you that there would be no delay in the repayment schedule. On the other hand, we intend to increase the number of our monthly instalments. We would come by the bank to discuss this in detail on [date] with our broker Mr. [name]. I am also attaching her documents which are required for sharing the mortgage.

These include copies of her identity card, her bank statement and proof of income documents along with our marriage certificate. If you have any more queries, please feel free to contact me on [phone number] or [email address].

Looking forward to your prompt response.

2

I had taken a mortgage from [ABC] bank on [date] and I want to include my sister in my mortgage. She is going to share the title of the property with me. We are going to share the instalments too. I have taken this decision due to some health issues.

I would be travelling from [month] for getting treatment from abroad. Since I would be out of the country and this may interfere with my payment schedule, having her on board will help me stay on track and ensure that I do not fall behind the schedule. She is a very responsible person and I trust her completely.

I authorize you to deal with her in my place and I am giving her the power of attorney to take any decisions which may be required. I want to assure you that there will be no delay in the repayment schedule and any issues that come up can be discussed with her. My sister’s complete contact details are as under.

[contact details]

I authorize you to share my mortgage details with her and if she requires any information regarding my mortgage arrangements, please facilitate her in this regard. I am also attaching her identity number and her bank account number and other financial details.

If any other documents are required or there are any further queries, feel free to contact me at [phone number] or [email address].

Looking forward to your cooperation and consideration.