Buying a remortgaged house?

Dirty_Dave

Hi.

If I wanted to buy a house and the person who owned it had remortgaged the entire house or even just 50% of house, would the price of the property be 50% less of the original price, what about if here was a 100% remortgage?

jacquij123

I think you'll find that the mortgage on the house has no bearing on the price as far as you as a buyer is concerned. It's up to the vendor to sort out the mortgage when they sell the house.

Ian_W

100% remortgages have never to my knowledge been available and certainly aren't now.

The property owner owes the mortgage company the money borrowed which is secured by a legal charge against the house. When you buy it their solicitor is obliged to repay the mortgage and remove the legal charge with your money before the balance is passed on to the seller.

If you don't have the cash to buy outright then you get your own mortgage which your solicitor has to register against the property title at the same time as using the money you've borrowed to pay the seller the price agreed.

The whole process is more complex than that, but that is basically how it works.