Removing parents from mortgage..?

Cara79

Hi guys

Here’s a question for you - sorry if it's long! When I moved out of home, my parents kindly helped me get the mortgage I require by becoming joint mortgage holders.

I couldn’t take the mortgage on getting the multiple I required with the lender I wanted because they only went up to x 3.5.

Anyway, having paid a big lump sum off at the end of my fixed period of £9k, plus I’m on capital repayment, I can now afford the mortgage myself. :j I earn £23,500 (soon to rise) and the mortgage as at August 2007 will be around £80k, plus I’ll be paying at least another £6k off. So should be around £75k :j

Anyway, the question is. My parents are thinking of coming off the mortgage, and the deeds, but having a ‘charge’ on it to protect their £20k deposit. I think we should have done this initially or they go ‘guarantor’ but hey you live and learn.

I’ve got until August 2007 until my fixed period ends, do you think its worthwhile getting my parents off the mortgage and deeds now (and how much do you think this might cost?), or waiting until August 2007 and then presumably re-mortgaging in my own name and getting parents off deeds.

I’m hoping this makes sense. I guess the thing is, technically my parents own a quarter each (and I own half), but that’s subject to capital gains tax etc. Plus they now don’t want that debt commitment as they may want to use it.

So I guess the question is, should I look into it now or waiting until the fixed period ends. Also, do you know of the likely costs to get parents off deeds and mortgage?

Does that make sense?
Thanks for any advice,
Cara
x

Coupon-mad

I think you just need a phone call or two to local Solicitors to find out the likely cost of a Transfer of Equity. If you stay with your current lender you do not need a remortgage.

If the Transfer of Equity costs are a bit steep, it may be worth waiting till Aug 2007 though. Then source another lender with a good fixed rate and go for a remortgage in your name and transfer of equity at the same time (Solicitor will advise).

(EDIT P.S: the solicitor can also register the second charge in favour of your parents at the same time as the Transfer and/or Remortgage).