Can I remortgage on an unencumbered house ????

Apologies if this is in the wrong place !!!!

Is it possible to take out a mortgage on an unencumbered house? (think that is the correct term - I own it outright - I have no mortgage on it)

I've been told that I can and I can't (on both counts, just by friends and not by a professional). I, at the moment, am a stay at home Mum with pre - school children and am not working. My husband is in regular employment but his name is not on the deeds to the house etc, the house was mine before we met. If we are able to take out a mortgage on my house (we'd want to borrow about 20,000.00 - 25,000.00 my house is valued at approx £200,00.00) would the house have to be in his name too??

Im a real fish out of water when it comes to mortgages etc and would appreciate any help /advice anyohne could offer :)
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Comments

  • Matt1982
    Matt1982 Posts: 359 Forumite
    Yes, should be fairly straight forward, have a chat with a whole of marker broker.

    If you have no income then would have to be in joint names. If you have income possible you can do in your name only.
  • Conrad
    Conrad Posts: 33,137
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    Well I've just done one this morning for a free lance journalist so I hope so!!
  • Thanks both of you - was worried someone would just laugh in my face !!!!! :)
  • Wutang_2
    Wutang_2 Posts: 2,513 Forumite
    Nightlight wrote: »
    Thanks both of you - was worried someone would just laugh in my face !!!!! :)

    Wear a skiing outfit and a snorkel when you see the adviser and this can still happen.
    Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam
  • Leon_W
    Leon_W Posts: 1,813
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    edited 26 February 2010 at 2:55PM
    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.
  • Conrad
    Conrad Posts: 33,137
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    SORRY I DIN'T READ YOUR OPENING POST PROPERTY.

    Now I see you say you don't earn, which means a traditional mortgage is not possible in your name alone.

    To safeguard your equity you can draw up a separate legal document (not to be done with the lawyers dealing with the mortgage) setting out your 'articles of association' if you like.

    Adding your partner will involve additional legal fees as he is effectively buying into a property.
  • getmore4less
    getmore4less Posts: 46,882
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    Why get into debt?
  • Wutang wrote: »
    Wear a skiing outfit and a snorkel when you see the adviser and this can still happen.

    Thanks for that !!!!!!!!!!!!!!!!!!!!!!!! Lol
  • Why get into debt?

    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*
  • 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*

    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.
    Warning ..... I'm a peri-menopausal axe-wielding maniac ;)
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