Can I remortgage on an unencumbered house ????

2

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  • Leon_W wrote: »
    As Matt says, the only fly in the ointment is if you have no admissable income which, as you are a stay at home mum, might be the case.

    This would mean adding your other half to the title deeds as they must be the same as the names on the mortgage.

    Now, as your house is unencumbered and the mortgage is small then considerable care should be taken when choosing a mortgage. Some lenders treat unencumbered as any other "remortgage" and will offer free valuations and free legal fees etc, a benefit definately worth having.

    Some lenders will treat it as a purchase and you will have to foot the bill for your own legals and valuation fee, and with such a small mortgage, these would add up to a considerable percentage of the loan amount.

    Also, do not go for cheapest rate. You do not want to be looking around for another mortgage in a few years time because you took a "cheap" introductory fixed or tracker as it is an excuse to lump on more fees if switching lender again (many wont even take mortgages that small). No, it's best with a small mortgage to find the cheapest mortgage for the long term overall.

    regards

    edited to add: even with a "free" legal package there will probably be a charge for adding a name to the Land registry.

    Thanks very much your help ......really wanted to just keep me on the title deeds - maybe i'll just have to wait til I can return to full time work !! :(
  • No, it's not the best way to do it.

    The best way is to rein in your expenditure and save up what you need.

    Taking out a mortgage is possibly the worst option! Firstly, the loan will be for a long time (20 years maybe?) so you'll be paying interest all that time, which means that you could end up paying £20k for a £10k loan :eek:

    Worst still, you are putting your house in hoc! If you fail to keep up all the repayments, you could end up losing your house, just for the sake of a "proper kitchen and bathroom and ... a credit card".

    Really - not a good idea at all.

    Hi thanks ....yup I can see where you're coming from totally but I seem to have been reining in everything for ages at this rate I might get straight by the time the kids give me some grandchildren !!!!! :eek:
  • Matt1982
    Matt1982 Posts: 359 Forumite
    You can have the mortgage on a shorter term than 20yrs if that is affordable to you.

    If you want to keep property just in your name then you will need to wait until you have some income.

    Good luck whichever path you decide.
  • Matt1982 wrote: »
    You can have the mortgage on a shorter term than 20yrs if that is affordable to you.

    If you want to keep property just in your name then you will need to wait until you have some income.

    Good luck whichever path you decide.

    Thanks very much Matt you've been really helpful !:T
  • happybroker
    happybroker Posts: 1,301 Forumite
    It's been a hell of a while since I've done one but a handfull of lenders used to allow the mortgage to be joint and the deeds in just one name. This is called "borrower non-proprietor". Woolwich were certainly one of them, so were Igroup.

    The party that was not on the deeds would need to take independant legal advice and sign a waiver.

    Like I say, this was some time ago and wasn't the norm at all but used to be doable. Some of the smaller building societies may be able to take a view on it possibly. A whole of market broker would be able to find out but may want a fee for the work as the commission would be neither here nor there on a mortgage that size.
    Happily an ex mortgage broker!
  • Leon_W
    Leon_W Posts: 1,813
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    Debtfreechick.

    Not all debt is bad debt !

    If the OP was going on holiday or going to P*ss the remortgage money up the wall I would agree with you !

    However, they seem to be intending to make home improvements. Now, the OP says they need to rewire, fit new bathroom and kitchen which indicates to me the house could be in a pretty tired state (no offence if it is not) and making these improvements is likely to increase the value of the house more than the sum needed to improve the property and improve its' sales potential if needed.

    I find some people quite odd, they generally make these sort of improvements when they come to try and sell the house because they find it hard to sell or prospective buyers will immediately say "it needs a new kitchen, bathroom,rewire etc" and knock you down accordingly (sometimes the mortgage valuer will do it aswell), so people improve and get no benefit whatsoever as it's the new buyers who get to use the new kitchen etc.

    If the OP can afford it then why not ?
  • VIGILANT22
    VIGILANT22 Posts: 2,516 Forumite
    borrower non-proprietor...yes Woolwich did... as did Nat West
  • Leon_W wrote: »
    Debtfreechick.

    Not all debt is bad debt !

    If the OP was going on holiday or going to P*ss the remortgage money up the wall I would agree with you !

    However, they seem to be intending to make home improvements. Now, the OP says they need to rewire, fit new bathroom and kitchen which indicates to me the house could be in a pretty tired state (no offence if it is not) and making these improvements is likely to increase the value of the house more than the sum needed to improve the property and improve its' sales potential if needed.

    I find some people quite odd, they generally make these sort of improvements when they come to try and sell the house because they find it hard to sell or prospective buyers will immediately say "it needs a new kitchen, bathroom,rewire etc" and knock you down accordingly (sometimes the mortgage valuer will do it aswell), so people improve and get no benefit whatsoever as it's the new buyers who get to use the new kitchen etc.

    If the OP can afford it then why not ?

    Im not planning on selling etc .... basically I was lucky enough years ago when I was young to have a good job and was able to buy a property outwrite.... but at the time was'nt smart enough to get things done ....partying was far more important to a young twenty something !!!! .... years later after and i chose to stay home and look after my kids while they were babies etc, I wish I'd been smarter back then ! But now following several knock backs of all sorts of situations and redundancies (ol man), we'd like to improve the property while it is of benifit to us - ie while the kids are at home - and clear a couple of credit cards !

    Thanks everyone for all your help - have to admit I've gone from "yay" to " oh what do I do now" and back to "yay....i think!!" just since i posted the original post !!!!!!!!!!!:T
  • getmore4less
    getmore4less Posts: 46,882
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    Nightlight wrote: »
    Dont really want to get 'into debt' but desparately need to do stuff around the house - like rewire - add a proper kitchen and bathroom and need to clear a credit card - been told this would be the best way to do it. *shrugs shoulders*

    £20-£25k seems a lot perhaps a break down

    rewire?
    kitchen?
    bathroom?
    CC debt? (why has this mounted up?)
  • £20-£25k seems a lot perhaps a break down

    rewire?
    kitchen?
    bathroom?
    CC debt? (why has this mounted up?)

    20 - 25 i was told is the smallest amount that you'd get on a mortgage or remortgage and that was a better option than a bank loan.

    whole house needs rewiring, needs a proper kitchen and bathroom - how can I elaborate? .... the bathroom basically needs totally ripping out re plastering and doing all again....kitchen is pretty much the same - dont get me wrong Im not after some top notch kitchen - just something thats decent and workable !! the whole hot water and heating system needs replacing - has practically been condemed !!! not good over the winter with pre school kids in the house ! Some of the windows need to be replaced - half house has the old original (and rotton) wooden frames and the other half is the old aluminium frames, all stuff that Im unable to do myself so theres also the cost of proper tradespeople ...CC ... about 7000 what can I say ... theres been times when stuffs just had to go on the CC and times when it just could'nt be cleared :o
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