Remortgage from interest only to repayment advice please.

forgotmepassword

Hi, I have just finished a 2 year interest only mortgage. Whilst i enjoyed the interest rate coming down, i would now like to switch to a repayment. I went for an interest only because i am disabled and unable to work. I now have a girlfriend who is moving in with me. She is in full time employment. I have owned the house we live in for approx 16 years. Its estimated to be worth £175.000. We would need a mortgage of £55.000.
Can anyone advise the best place to seek a remortgage under these circumstances? Would it be best to go for a joint mortgage or just my name? (but including her income obviously)
Thanks for any help.

MrsManda

forgotmepassword wrote: »

Would it be best to go for a joint mortgage or just my name? (but including her income obviously)
Thanks for any help.

I don't think you can get a mortgage using her income and your name as it is the name on the mortgage which matters in terms of liability. You can get a joint mortgage on her income alone though you need to think very carefully about this as that'll effectively mean that she has a large stake in your house so if you break up you'll still be financially tied, especially as you'd be unlikely to be able to buy her out.

getmore4less

Have considered just overpaying your existing mortgage why change?

What are the details of the exiting mortgage

new_home_owner_3

MrsManda wrote: »

I don't think you can get a mortgage using her income and your name as it is the name on the mortgage which matters in terms of liability. You can get a joint mortgage on her income alone though you need to think very carefully about this as that'll effectively mean that she has a large stake in your house so if you break up you'll still be financially tied, especially as you'd be unlikely to be able to buy her out.

very good post.

forgotmepassword

getmore4less wrote: »

Have considered just overpaying your existing mortgage why change?

What are the details of the exiting mortgage

Hi, im not sure what overpaying existing mortgage means?

Existing mortgage is interest only.

SandC

Before the 2 year interest only deal what did you have then, having bought the house 16 years ago? So far as switching to repayment is concerned, if it's anything like mine your current lender will be more than happy to do so, I simply switched over and all other terms stayed exactly the same.

What is happening right now, are you still on interest only? Are you now on SVR and not in a fixed or tracker deal? As I understand it you want to go to repayment because there is now extra household income from your girlfriend. This does not mean that you need to put her on the mortgage (or heaven forbid, the deeds).

I really, really would not go putting new girlfriends who haven't yet moved in on to the mortgage, you can simply take money off her as lodgings or rent.

getmore4less

forgotmepassword wrote: »

Hi, im not sure what overpaying existing mortgage means?

Existing mortgage is interest only.

Overpayment is when you pay more than your contractual payment.
You can do this with most mortgages allthough often there are limits on how much during promotional periods.

eg.
The mortgage company asks for a regular payment of say £200 to cover the interest.

If you can afford more you pay say £300 an extra £100 this starts to pay off the capital.

You can work out what the payment should be to make this the same as a normal repayment mortgage, many lenders will be happy to do this for you and if it is affordable change the mortgage to repayment.

You do need to check that there are no penalties for making these extra payments, if you are outside the promotonal period(you say just finished) there are probably none but do check.

It might be worth talking to someone to explain what you can do but be carefull not to sign up or a new deal with costs if this one can do what you want.

What is your current interest rate, full mortgage term, outstanding amount and current payment?