Remortgage for cash

PeterJames123

Hi Guys,

I have been living at home for the past 3 years with my wife, my elder brother and his wife and also my younger sister. As you can tell it’s getting a little cramped but this was simply to help my wife and I to build up 35k deposit for our new home.

This simply is not a big enough deposit for us to buy a decent house in my area, they start around 200k and we are not going to blow it on a flat. I also need to be close, as my mother has recently been diagnosed with multisclerosis and I want to be close.

For the past year my brother and I have been paying the mortgage and bills for my parent’s house as my fathers business was forced to shut down due to the economic climate. The mortgage is 55k meaning the repayments are only £300 a month. My brother and his wife have offered to pay the bills as soon as I move out. Last night we all discussed ways of helping my wife and I to get a bigger deposit and we thought of a remortgage. When the house was purchased it was worth 60k its now worth 300k.

If my parents wanted to remortgage the house and give me around 50k roughly how much more would their monthly repayments increase by? I am not prepared to leave them in a difficult financial situation. They currently have 17 years left on their current mortgage and its an interest only mortgage, they also have 2 endowment polices.

Thank you very much.

opinions4u

If you're paying £300 on £55k, it seems reasonable to suggest that you'll be paying nearly double on £105k. So think £600ish.

I've not taken the endowments in to account as the information you provide is limited - so the increase in payments could be a little higher.

The key question for me is how will your parents be able to borrow the money if they can't afford the payments at the moment?

SouthCoast

Bear in mind Inheritance Tax implications.

dwsjarcmcd

Have a look at the whole situation, it may be an option to transfer the mortgage to C & I and even reduce the term as well as seeing what the value is of the endowments, when you cash in or sell. Would be worth taking professional advice before you do anything.

David