Second Mortgage

VIGILANT22

ohwattagosiam wrote: »

Firstly, you are the only poster that has said this cannot be done. And secondly, as you brought SRB's up as a potential problem, I in turn read up about them on several sites including the FSA's, and subsequently formed an opinion on the matter. The problem with your posts are that they are not constructive. You appear to be only presenting obstacles rather than offering possible solutions. It's too easy to simply shoot down people ideas without coming up with any viable alternatives.

No it is making you aware...surely you want to be fully informed!!

Re "subsequently formed an opinion on the matter."......:)....Lots of people hae opinions about a lot of things, for example my tax assesments this year!...however opinion doesn't count...Facts do.....:)

Peter_L

Peter_L wrote: »

Gentlemen (or Ladies !) please ...

I went to see a solicitor whose specialism is Property Law and has been practising since 1975 ...

He informs me that:-

As I am the legal owner of the property which was formerly owned by my parents (father passed away 5 years ago but it didn't stop Wolstenholmes sending him a letter for consent of the transfer but that's another story) then I cannot proceed with the porting of the mortgage unless my name was removed first and added later but to do this raises more questions than answers and cost more than I would actually save - !!!!!! I could have locked into 0.5% above BOE base for 17 years but ah well ... he also reminded me that as the house was gifted, IF may not agree to the port anyway. So that's out of the question, he didn't help either by telling me he had a lifelong tracker of 0.2% above base !

As far as the gifting of the house is concerned and as it was my parents only home, there is no issue with that - no stamp duty payable and as her estate is below the £325k threshold - no CGT is payable.

I'm not particularly worried about the Inland Revenue as my wife works for them !!! And as I said before - I'm not trying to pull a scam - as far as my mum is concerned, look at it from the point of view as her renting from a private landlord (forget that it is only for elderly residents) and I WILL BE PAYING HER RENT !!!

I am grateful for all for posting here and as a forum is designed to provoke thought and pooling of resources and responses I would like to think that anybody who is going through something similar would benefit from our experiences and knowledge but would request that we keep handbags in check and focus on what we can assist on please.

Now then back to my original question all those posts ago ...

Erm seems like the 2 posters above have overlooked my plea for calm ... ???

VIGILANT22

I hope you haven't paid for that advice, is all I can say........:)

Remember, people will always believe what they want to hear....practising property law...what has that got to do with Estate planning, wills, trusts and lifetime giving

Peter_L

VIGILANT22 wrote: »

I hope you haven't paid for that advice, is all I can say........:)

Remember, people will always believe what they want to hear....practising property law...what has that got to do with Estate planning, wills, trusts and lifetime giving

Vigilant22 you may claim not to be a troll but you are definitely a wind up merchant as your trail of doom and gloom can clearly be seen on threads all over this forum ... you also blatantly ignore what has been said and only see what you want to see (which part of free legal clinic don't you understand ?)

VIGILANT22

and property law does not cover .....Estate planning, wills, trusts and lifetime giving

Peter_L

Can't believe that at the second time of asking the same question on 2 separate threads that I can't get a simple answer to my original question ... !!! :mad:

Thrugelmir

Peter_L wrote: »

Can't believe that at the second time of asking the same question on 2 separate threads that I can't get a simple answer to my original question ... !!! :mad:

What doesn't sound "right" about the mortgage offer?

Peter_L

Thrugelmir wrote: »

What doesn't sound "right" about the mortgage offer?

Well when I checked on Experian the result was that Abbey credit checked me on a 'First Mortgage' which isn't true and the broker mentioned something about not telling IF that I'm applying for a mortgage for the 2nd property with the Abbey ??? £995 broker fee sounds astronomical to me and when I have approached another WOM broker their fees where much less but they couldn't get me the same deal (or one even close for that matter ?)

Thrugelmir

Peter_L wrote: »

Well when I checked on Experian the result was that Abbey credit checked me on a 'First Mortgage' which isn't true and the broker mentioned something about not telling IF that I'm applying for a mortgage for the 2nd property with the Abbey ??? £995 broker fee sounds astronomical to me and when I have approached another WOM broker their fees where much less but they couldn't get me the same deal (or one even close for that matter ?)

Try approaching a lender directly and sound them out with your proposal.
The main issue for any lender is whether you afford both mortgages until such time as you sell your current house.

Sounds like a mortgage broker to avoid!

Pincher

Peter_L wrote: »

He informs me that:-

As I am the legal owner of the property which was formerly owned by my parents (father passed away 5 years ago but it didn't stop Wolstenholmes sending him a letter for consent of the transfer but that's another story) then I cannot proceed with the porting of the mortgage unless my name was removed first and added later but to do this raises more questions than answers and cost more than I would actually save - !!!!!! I could have locked into 0.5% above BOE base for 17 years but ah well ... he also reminded me that as the house was gifted, IF may not agree to the port anyway. So that's out of the question, he didn't help either by telling me he had a lifelong tracker of 0.2% above base !

For my benefit, did he give you a rationale why it's so difficult to port a mortgage to a house you already own? I was told it's easier to buy my mother's house with a new mortgage, than to get a mortgage when I already own it after gifting, but I don't know why!

In the end, you borrow money against an asset. All this jargon about "First-Time Buyer", "Home Improvement", "Re-mortgage" are just categories invented so monkeys can service customers without thinking. Or is there some convoluted labyrinthine explanation for not lending on something I already own.

There is another property I jointly own (50:50) with my mother, and if I get it through inheritance later, I will own it outright. In that case, they will lend for Home Improvement, and strictly speaking, I have to use it to improve the house, and not spend it on wine and loose women, and definitely not to buy another house. So if I wanted to raise finance on it, I have to buy it from her with a mortgage, and then she can "lend" me the money. Arrrrggghh!