Can this be done - mortgaging

lav_2

Hi,

Can this be done?

We (pensioners) have a 60k mortgage and are in difficulty paying the payments (it is a the 4th year of a 10 year mortgage) so our daughter has suggested that she gets a mortgage that will cover the 60k and we sign over a percentage of the property to her to the tune of 60k.

Her mortgage would be over 25 years then we would pay the much reduced mortgage. Of course when we pop our cloggs she will as an only child inherit it all. She has a approx 40k collateral in the property which she rents out. She lives with us and earns enough money to cover a normal mortgage of 60k.

Is this possible?

Lav

arkie

you will have to sign over all of the property to her, she gets a mortgage for 60k she does not pay a deposit, its called a deed of gift

lav_2

Hi Arkie,

Thanks for that, didn't know there was such a thing! Is there a particular mortgage company that deal with this, or will any?

Lav

Conrad

It is possible, however some lenders may reject where the relative has had recent arrears as they deem this to be 'risk transferance'. Be sure any broker dealing with this has a full and frank chat with a Human lending underwriter before submitting the case.

CARE - watch out for brokers charging big fees - some will seek to hide them with phrases such as "dont worry my fee is added to the loan" - youre still paying it!
Get an IDD up front and ensure all broker fees are in there AND on a KFI (illustration).

Best of luck

arkie

lav, use a broker to arrange it and his/her expertise will come in useful, a reasonable broker fee in your case is £295,