Is it possible to get a mortgage on a house I own outright?

fileep99

Might be a strange one here... I own a house outright having borrowed a bit of money from my parents to cover the full amount without needing a mortgage.

Now is the time to pay them back and I called a bank to ask for a quote for a mortgage - they said they could not offer me a mortgage as they did not know who the money was going to - is this correct?! surely a mortgage is just a loan on a house as security?

GMS

fileep99 wrote: »

Might be a strange one here... I own a house outright having borrowed a bit of money from my parents to cover the full amount without needing a mortgage.

Now is the time to pay them back and I called a bank to ask for a quote for a mortgage - they said they could not offer me a mortgage as they did not know who the money was going to - is this correct?! surely a mortgage is just a loan on a house as security?

You should be able to get a remortgage subject to meeting criteria. Although you do not have a mortgage it would still be classed as a remortgage transaction.

The lender is entitled to ask what the money is for. Why not tell them the reason? It is not an unreasonable request.

Visit a 'Whole of Market' broker if you are unsure.

luckyfool

Have you owned the property at least 6 months? If not most mortgage lenders will decline a remortgage out of hand anyway. The lender will always look for you to give information on what the purpose of the additional borrowing is for, if you were unwilling to explain where it was going then a lender is always going to say no. Money laundering regulations do mean that lenders have to satisfy themselves that they are not being used to launder proceeds of crime.

herbiesjp

Should be easy to do as long as you meet criteria.

Give them the reason, and you should be fine.

Thrugelmir

fileep99 wrote: »

surely a mortgage is just a loan on a house as security?

The mortgage is not a loan. Its the legal charge placed on a residential property as security for a loan.