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  • FIRST POST
    Nightlight
    Can I remortgage on an unencumbered house ????
    • #1
    • 26th Feb 10, 2:23 PM
    Can I remortgage on an unencumbered house ???? 26th Feb 10 at 2:23 PM
    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
Page 1
  • Matt1982
    • #2
    • 26th Feb 10, 2:27 PM
    • #2
    • 26th Feb 10, 2:27 PM
    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
    • By Conrad 26th Feb 10, 2:39 PM
    • 28,354 Posts
    • 48,073 Thanks
    Conrad
    • #3
    • 26th Feb 10, 2:39 PM
    • #3
    • 26th Feb 10, 2:39 PM
    Well I've just done one this morning for a free lance journalist so I hope so!!



    A new, confident, globally oriented Tiger in the west, an investor paradise Britian will prosper like never before.

  • Nightlight
    • #4
    • 26th Feb 10, 2:41 PM
    • #4
    • 26th Feb 10, 2:41 PM
    Thanks both of you - was worried someone would just laugh in my face !!!!!
  • Wutang
    • #5
    • 26th Feb 10, 2:48 PM
    • #5
    • 26th Feb 10, 2:48 PM
    Thanks both of you - was worried someone would just laugh in my face !!!!!
    Originally posted by Nightlight
    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
    • By Leon W 26th Feb 10, 2:52 PM
    • 1,638 Posts
    • 1,099 Thanks
    Leon W
    • #6
    • 26th Feb 10, 2:52 PM
    • #6
    • 26th Feb 10, 2:52 PM
    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.
    Last edited by Leon W; 26-02-2010 at 2:55 PM.

    • Conrad
    • By Conrad 26th Feb 10, 2:55 PM
    • 28,354 Posts
    • 48,073 Thanks
    Conrad
    • #7
    • 26th Feb 10, 2:55 PM
    • #7
    • 26th Feb 10, 2:55 PM
    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.



    A new, confident, globally oriented Tiger in the west, an investor paradise Britian will prosper like never before.

    • getmore4less
    • By getmore4less 26th Feb 10, 3:29 PM
    • 25,183 Posts
    • 15,237 Thanks
    getmore4less
    • #8
    • 26th Feb 10, 3:29 PM
    • #8
    • 26th Feb 10, 3:29 PM
    Why get into debt?
  • Nightlight
    • #9
    • 26th Feb 10, 4:39 PM
    • #9
    • 26th Feb 10, 4:39 PM
    Wear a skiing outfit and a snorkel when you see the adviser and this can still happen.
    Originally posted by Wutang
    Thanks for that !!!!!!!!!!!!!!!!!!!!!!!! Lol
  • Nightlight
    Why get into debt?
    Originally posted by getmore4less
    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*
    • Debt_Free_Chick
    • By Debt_Free_Chick 26th Feb 10, 4:46 PM
    • 13,150 Posts
    • 9,492 Thanks
    Debt_Free_Chick
    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*
    Originally posted by Nightlight
    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

    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
  • Nightlight
    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.
    Originally posted by Leon W
    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 !!
  • Nightlight
    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

    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.
    Originally posted by Debt_Free_Chick
    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 !!!!!
  • Matt1982
    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.
  • Nightlight
    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.
    Originally posted by Matt1982
    Thanks very much Matt you've been really helpful !
  • happybroker
    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
    • By Leon W 26th Feb 10, 6:16 PM
    • 1,638 Posts
    • 1,099 Thanks
    Leon W
    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
    borrower non-proprietor...yes Woolwich did... as did Nat West
  • Nightlight
    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 ?
    Originally posted by Leon W
    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 !!!!!!!!!!!
    • getmore4less
    • By getmore4less 26th Feb 10, 6:32 PM
    • 25,183 Posts
    • 15,237 Thanks
    getmore4less
    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*
    Originally posted by Nightlight
    £20-£25k seems a lot perhaps a break down

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