Mortgage Complication - Please Help

Jennyb007

I would be very grateful for some advice. I have a property which I will shortly be putting on the market for £185k. If It sells at that price I will have around £70k of equity.

My parents are in the process of purchasing a property for £250k in my name which I will pay them for once my existing property is sold.

To avoid paying stamp duty twice the solicitor has advised putting the deeds in mine and my husbands names and my parents have signed a document stating that the money is a home loan to me.

Firstly - are there any restrictions to us being able to buy the property from my parents once the sale of my house completes, i.e. being able to get a mortgage on a property which is in our name?

Secondly - the mortgage we currently have is solely in my name and the fixed rate deal I am on has expired and I am now on a rate of 4%. I was hoping to move to a better mortgage deal asap but this is complicated as for the level of borrowing required the mortgage needs to be in joint names but my husbands name is not on the deeds. Is it worth us trying to sort out a better deal now or just leaving it as I am not sure if we can transfer a mortgage over to the new property.

I hope this makes sense - I have spent hours talking to two mortgage companies and am not getting anywhere. Any help/advice much appreciated. Jennyb

Thrugelmir

You will already own the property. As your names will be on the title deeds. I assume from what you've said regarding stamp duty. In that your parents will lend you the £250k to complete the purchase.

The immediate problem you will face is that most mortgage companies require the property to be owned for 6 months before remortgaging is considered.

Also as you already own the property, porting your existing product may be an issue with some lenders. Some restrict porting to a back to back sale/purchase.