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Mortgage Or Remortgage

My father has agreed to sell me a property for a decent price,i am unsure whether it is better for me to get a straight mortgage or get the deeds into my name and remortgage the house against the value of it.

Comments

  • depurnell
    depurnell Posts: 24 Forumite
    You would not be able to re-mortgage the house.

    The rates are better for puchase than re-mortgage at the moment anyway.
  • minimike2
    minimike2 Posts: 2,210 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    depurnell wrote: »
    You would not be able to re-mortgage the house.

    The rates are better for puchase than re-mortgage at the moment anyway.


    That is incorrect, of course he would be able to re-mortgage the house if it was transfered into his name. Plus rates are not everything. Purchase means paying legal and valuation fees. Remortgages generally have these paid for and most lenders rates are the same for both anyway.


    The decision here shouldnt be based on what works out cheaper mortgage wise, but more on the tax implicaitons. I would recommend your father seek independant legal and taxation advice before the sale takes place to work out the way that leaves the lowest, tax liability, or potential liability.
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