Second Mortgage

Peter_L

Pincher wrote: »

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!

Hi Pincher

Seems we are the only ones who actually understand each other and what I have originally asked without chipping in about CGT, Stamp duty, gifting vs inheritance etc. which I did NOT ask for advice on. I sought legal advice which I paid for on 2 separate occasions before I dived into this - no scam just getting a bigger house and mum moves to be closer to her friends which I PAY THE RENT ON (no claiming government dosh to pay for her rent/bills etc.), sell my house and end up with a mortgage for ONE HOUSE (no second home etc.). The only thing I screwed up on was not porting my existing 0.5% above base for the term tracker BEFORE I transferred title as the problem is not with the law but merely the fact that IF do not do new or remortgages but was willing to Port my existing mortgage provided I didn't already own the property !!! DOH !!! Very difficult to transfer back and forth now before April 1st deadline and would end up costing thousands to do !!! Apparently most banks will not Port on a property that was gifted anyway (hence your realisation that it would be easier to get a new mortgage which we are facing now.)

Note to other posters - the information that I and most likely Pincher have posted are based on EXPERIENCE and not theory or guess work !!! It CAN be done and HAS been done ... nothing illegal about it, the law would have prevented us from doing so if this was the case !!!

Pincher

Peter_L wrote: »

The only thing I screwed up on was not porting my existing 0.5% above base for the term tracker BEFORE I transferred title as the problem is not with the law but merely the fact that IF do not do new or remortgages but was willing to Port my existing mortgage provided I didn't already own the property !!! DOH !!!

Hopefully somebody else will see this thread and not make the same mistake, so that's something.

Who knows, maybe it's a blessing in disguise. If you get a 5.79% 5 year fixed rate Home Improvement mortgage now, and then the BOE shoots up to 8% due to hyper inflation in 2012, you are going to thank god you didn't port it. In the mean time, you still have the BOE+0.5% to keep you smiling.:)

VIGILANT22

IF, Abbey etc don't involve themselves in estate planning, gifting of properties etc...that is the client's responsibility..however according to the last 2 posts the rules are being re written....:T

The FSA have some vacancies!....:rotfl:

Peter_L

VIGILANT22 wrote: »

IF, Abbey etc don't involve themselves in estate planning, gifting of properties etc...that is the client's responsibility..however according to the last 2 posts the rules are being re written....:T

The FSA have some vacancies!....:rotfl:

Give it a rest Vigilant22 you may be right and you could be hopelessly wrong and judging by the responses on other posts, seems I'm not the only one fed up with your ramblings, my house, my mortgage, my life, my business !!!

Peter_L

Thrugelmir wrote: »

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!

Thanks Thrugelmir, I have already spoken to a family friend who is also a mortgage advisor at Abbey/Santander and she said there is no problem except that I would have to have had my name on the electoral roll for at least 6 month at the address, I've applied at the council and I'm in no hurry. But I'm sure Vigilant22 will have something to say about that !!!:mad:

VIGILANT22

Peter_L wrote: »

Give it a rest Vigilant22 my house, my mortgage, my life, my business !!!

Yes but you made it public by posting on these forums...........:rotfl:

VIGILANT22

Peter_L wrote: »

Thanks Thrugelmir, I have already spoken to a family friend who is also a mortgage advisor at Abbey/Santander and she said there is no problem except that I would have to have had my name on the electoral roll for at least 6 month at the address, I've applied at the council and I'm in no hurry. But I'm sure Vigilant22 will have something to say about that !!!:mad:

Mortgage adviser....6 months on electoral roll....:T....This gets better...:rotfl:

Peter_L

So shoot me - do us all a favour home get a job/life WUM, in fact do you actually own your own home/have a mortgage or still living at home with mummy ? I ask as you spend an awful lot of time on this forum ...

Peter_L

VIGILANT22 wrote: »

Mortgage adviser....6 months on electoral roll....:T....This gets better...:rotfl:

Just pray tell what is your problem and or qualifications/job as you seem to think you know more than anyone else on these forums and or IFA's and legal professions who get paid to advise on these matters professionally ? Please don't bother responding on this thread anymore - your comments are unwelcome and your mannerism is childish (probably because that's what you are - a child !)

Thrugelmir

Peter_L wrote: »

Thanks Thrugelmir, I have already spoken to a family friend who is also a mortgage advisor at Abbey/Santander and she said there is no problem except that I would have to have had my name on the electoral roll for at least 6 month at the address, I've applied at the council and I'm in no hurry. But I'm sure Vigilant22 will have something to say about that !!!:mad:

You could use that time to plan the refurbishment and whatever else you plan for the property.