Quick question...

IWantToBeFree_2

M&D own a property outright, they are looking at mortgaging it to give me the cash to buy another property. When looking at mortgage rates, obviously they aren't first time buyers, but are they classed as remortgaging? Most remortgage rates mention moving from other providers or taking on more borrowings, which technically they aren't doing...

_Andy_

Yes it's treated as a remortgage.

herbiesjp

If they are staying with their current lender, they are taking a further advance

If they are moving lender, they are re-mortgaging

Unencumbered properties are treated by some lenders (not all) as a re-mortgage

IWantToBeFree_2

They have no mortgage, therefore they aren't staying with their existing lender and they aren't moving lender, thats where I have become a bit confused!

herbiesjp

IWantToBeFree wrote: »

They have no mortgage, therefore they aren't staying with their existing lender and they aren't moving lender, thats where I have become a bit confused!

The new lender they approach will view it as a re-mortgage of an unencumbered property

Let_Us_See

"They have no mortgage, therefore they aren't staying with their existing lender and they aren't moving lender, thats where I have become a bit confused"

You are confused. If your parents own the property outright then they do NOT have a current lender. No mortgage, no lender - easy. The term for this is unencumbered. If they want to release capital they will re-mortgage with a lender. Some lenders will allow a you to re-mortgage an unencumbered property - with the possibility of free valuation and free legal conveyancing, whilst others will only offer `purchase' schemes. Naturally, your parents will need an income to support the proposed borrowing. Find yourself an independent whole of market consultant and it should be a pieces of cake.