taking over a mortgage

minimoto

hi.

I would like to know how easy it is to take over a mortgage.

In theory if a friend was in arrears and thinking of handing keys back for a property how easy would it be to 'take over' the mortgage?

Caz3121

you would be purchasing the property so would need to apply for your own mortgage

minimoto

so couldnt just change the name and carry on paying?

the bank then wouldnt have to repossess and accept less than the mortgage?

Soot2006

minimoto wrote: »

so couldnt just change the name and carry on paying?

the bank then wouldnt have to repossess and accept less than the mortgage?

Bank doesn't care how much it gets from the sale. Obviously it will try to maximise; however any shortfall it will get from the former "owner" so it's by the by, really.

minimoto

so if my friend were to get their own mortgage, but only to cover the existing mortgage could they do that or would it have to be bought at market value?

property bought in 2007 at peak for £250k, mortgage 190k prob valued at 220k at a guess

Soot2006

As far as I'm aware you can sell a house for whatever you want as long as there is no hint of tax evasion (e.g. stamp duty).

"Market value" is the value the seller and the buyer agree to.

minimoto

but if the seller agrred to sell @190k would amortgage company want a say 10% deposit of that amount or would they take the valued LTV as a deposit?

GMS

Lender would base lending on the LOWER of the valuation or the purchase price.

Whatever happens a deposit would be needed.

Soot2006

minimoto wrote: »

but if the seller agrred to sell @190k would amortgage company want a say 10% deposit of that amount or would they take the valued LTV as a deposit?

Vendor gifted deposits are not straightforward like they used to be, so unless there were convincing circumstances the "market value" would the agreed purchase price, and thus you'd need a minimum of 10% deposit if not more.