My parents need a mortage, not a re-mortage...

InsertWittyNameHere

All I can seem to find are people offering me to re-mortage...

I'll explain the situation:

My parents have fallen in love with a house, they've already payed off the mortage for the house we live in currently so everyone offering us a remortage are semi-pointless. We're looking for about £150,000... any ideas?

nmiah786

How much deposit do they have? Or are they planning to release some of the equity out of their mortgage free house to finance the new purchase. If that is the case then that is classified as a remortgage I think, maybe that why?

To be honest does it really matter to you whether it is called a mortgage or remortgage, as long as the lender is willing to lend you the amount required?

SammyD_2

What difference does it make? If I read your question properly, what you are saying is that your parents need a loan of £150,000 and that they intend it to be secured by a mortgage (the mortgage is just the bit that gives the lender the right to sell your house if you breach the terms of the loan, the money is advanced by way of a loan). It does not matter surely whether the mortgage goes over the house they are living in or the new property?

InsertWittyNameHere

Obviously it wasn't clear in my first post, they are selling up and moving, they need the £150,000 to cover the estimated difference in price from the house they are living in at the moment and the house they want to move to. I didn't think they'd be able to get a re-mortgage as there is no mortgage to move... isn't that where re-mortgaging companies make their money?

silvercar

I use re-mortgage to mean people changing their mortgage but not moving house.

I don't think the words matter, I can't see any company not being interested because they don't currently have a mortgage. They will have plenty equity in the new house and so will look a good proposition.

Ian_W

Hi IWNH,
Remortgaging Co's and Mortgaging Co's are one and the same. They're Banks & Building Societies who make their money charging interest on loans which are secured against a property so if the loan is defaulted on the property can be seized and sold to pay it off.

In buying a new property your parents would normally need a new mortgage anyway, if they weren't cash buyers, so the sale of their present one would pay off what's owed there and provide a deposit for the new house. In their case they don't owe anything so all the money from selling their house can go to the new one.

If you go to the Mortgage section of the site there are plenty of articles that Martin has written and even if they talk about remortgages a lot of the info will be helpful because all a remortgage is is a way of replacing one loan with another which is cheaper.

The thing that will decide whether your parents can have the loan will be their earnings, the lender will want to be assured they can afford it. There are probably 3 main ways of seeking a mortgage, which briefly are:
1. Bank or BS they already use. This can make it easier because the lender will know them and think them a good risk [I'm sure] but the drawback is their Bank BS may not have the best/cheapest deals to suit them.
2. Search for the best deals themselves. There are links from the mortgage section to comparison sites where if they enter their details and find out what's on offer.
3. Use a mortgage advisor to find the best deal for them. Again there are links to some national ones or they could use someone locally, particularly if recommended by friends or family.

HTH - I'm sure, like silvercar, that they won't have any difficulty finder the right mortgage and in due course you'll all be enjoying your new home.