Re-mortgage questions & ING confusion!

Moonchic82

Hi all,
I am looking to re-mortgage for the first time and wondering what the process is. I'm currently with RBS and my deal has ended and I'm on SVR. The mortgage is in my sole name as hubby's credit rating wasn't great when we first took out our mortgage and didn't want to risk being declined. We would now like to include him on the mortgage as his rating is fine now - does this cause any issues/hassles with re-mortgaging with another bank?

If I go with another bank do they communicate with my current bank and deal with the closing/transferring of the funds/mortgage or do I need to speak to RBS and do anything?

The deal I'm looking at requires a minimum of 20% deposit and I think we're around the 20% but it really will depend on what valuation they will give our house. Am I able to find out from them a valuation before I got through the application process - I don't want marks/decline on our credit file if our house isn't worth enough. I presume if I wasn't too far off the 20% it's acceptable to add cash to up the deposit to 20%.

Looking at the KFI sheet for a mortgage (ING 5 year fixed 4.99%) it says the following regarding overpayments:

During the initial period specified in section 6:
You can make capital repayments of up to 10% of the original amount of the mortgage per year without incurring any early repayment charge, subject to a minimum repayment of £1,000

Overpayments cannot be made before the end of the initial period specified in section 6

Section 6: What you will need to pay each month:
This illustration assumes that the mortgage will start on 01/07/2011
60 Monthly payments at a fixed rate of 4.99%
followed by
204 monthly payments at a variable rate, currently 3.5%

I'm confused as to me it contradicts itself and says I can make overpayments of 10% in the intiial period and in the same secion says I can't make any overpayments in the initial period! Can anyone help?!

Sorry for all the questions & thanks in advance!

izools

You'd need to agree to sell half the house to him for him to be named on the mortgage, so there will be hefty fees involved - you'll need a solicitor.

You can't just "add someone" to a mortgage, you have to sell a 50% interest in the property to him for which he would need a mortgage, or a joint mortgage with you to buy said 50% interest. And of course someone to do all the legal stuff.

beecher2

It's saying you can make capital repayments of 10%, but no overpayments.

If you have a look at ING's jargon buster you'll see it says

Capital repayment
A lump sum to reduce the loan, which may have the effect of reducing the term of your mortgage or your monthly repayments, if you have a repayment mortgage. Capital Repayments are not refundable.

and

Overpayments
By paying more than the contractual monthly payment you will build up an 'overpayment reserve'. You may be able to then use this to make one-off capital repayments, which may be used to reduce either your monthly payments, or the term of the loan, or use the reserve to make Underpayments. The overpayment reserve is not refundable.

Moonchic82

Thanks both, very helpful!

kingstreet

Moonchic82 wrote: »

Hi all,
I am looking to re-mortgage for the first time and wondering what the process is. I'm currently with RBS and my deal has ended and I'm on SVR. The mortgage is in my sole name as hubby's credit rating wasn't great when we first took out our mortgage and didn't want to risk being declined. We would now like to include him on the mortgage as his rating is fine now - does this cause any issues/hassles with re-mortgaging with another bank?

If I go with another bank do they communicate with my current bank and deal with the closing/transferring of the funds/mortgage or do I need to speak to RBS and do anything?

The deal I'm looking at requires a minimum of 20% deposit and I think we're around the 20% but it really will depend on what valuation they will give our house. Am I able to find out from them a valuation before I got through the application process - I don't want marks/decline on our credit file if our house isn't worth enough. I presume if I wasn't too far off the 20% it's acceptable to add cash to up the deposit to 20%.

Looking at the KFI sheet for a mortgage (ING 5 year fixed 4.99%) it says the following regarding overpayments:

During the initial period specified in section 6:
You can make capital repayments of up to 10% of the original amount of the mortgage per year without incurring any early repayment charge, subject to a minimum repayment of £1,000

Overpayments cannot be made before the end of the initial period specified in section 6

Section 6: What you will need to pay each month:
This illustration assumes that the mortgage will start on 01/07/2011
60 Monthly payments at a fixed rate of 4.99%
followed by
204 monthly payments at a variable rate, currently 3.5%

I'm confused as to me it contradicts itself and says I can make overpayments of 10% in the intiial period and in the same secion says I can't make any overpayments in the initial period! Can anyone help?!

Sorry for all the questions & thanks in advance!

Apply to a new lender for a joint mortgage. The solicitor handling the transfer will also be able to handle the transfer of equity to add your husband to the property ownership. The solicitor takes care of repaying the existing mortgage when he receives the funds from the new lender.

If you can find a deal with free legals, you may only have to pay the extra for the TofE, around £300.

Apply for a product where there's no valuation fee to pay and this will limit your wasted cost if your property doesn't value up. You can put some of your savings in to the pot if there seems to be a shortfall to keep you within the product's loan to value limits.