Mortgage on house already paid for

riffrack

Hello there

I have a few questions. Here is our situation. My mother owns a house in Leeds worth about £160'000 or a little more. The house currently has no mortgage on it. My wife and I live in Switzerland and over here by law you need to have at least a 20% deposit before you can buy property. Which means that most people cannot buy property until they are about 40.

Now my mum is being kind enough to lend us part of this deposit, as she doesn't have enough in her savings, we would like to re-mortgage (I'm not sure if that is the correct expression in this case) part of her house.
1. Is this possible to get a mortgage on property which has already been fully paid for?

As we will be repaying her the whole amount fairly quickly (approx. 5 years) we would like to get a mortgage which lasts less than ten years.
2. Is it possible to repay in such a short period?
3. Are there any mortgages which allow you to repay everything early without a penalty charge?

I know this probably the wrong place to ask, but someone might just know this.
4. What is the best way to transfer such a large amount of money abroad?

If my mother gets out a mortgage she still wants to have the option to move to another house.
5. If she has a mortgage on her current house, can she transfer her mortgage
on to the next house or would she have to close the first mortgage and apply for a new one?

Would be very grateful for any help.

silvercar

1. Is this possible to get a mortgage on property which has already been fully paid for?

Yes, no problem at all.

2. Is it possible to repay in such a short period?
3. Are there any mortgages which allow you to repay everything early without a penalty charge?

Yes, choose a mortgage with no redemption penalites. Most standard variable mortgages allow this.

4. What is the best way to transfer such a large amount of money abroad?

There is a thread on the "Anything Else" Pure Money board all about this.

5. If she has a mortgage on her current house, can she transfer her mortgage
on to the next house or would she have to close the first mortgage and apply for a new one?

Technically speaking you are closing one mortgage and starting another. There is nothing wrong with sticking with the same mortgage company and deal again, many mortgage comapnies would offer you free valuations to encourage you to stay with them.

Your issue may be (I don't know your Mum's circumstances) proving that your Mum has sufficient funds to repay the mortgage.

riffrack

:j great, thanks for your advice.

Is it possible to get a fixed rate mortgage with no redemption penalites?

MarkyMarkD

If you will definitely not repay the money within (say) 2 years, or 5 years, then get the cheapest fix you can for that period, ignoring the penalties as you won't have to pay them.

Almost inevitably the most competitive rates will have penalties, but generally only during the fixed period.