Best mortgage for homeowner

Ben27

My parents have offered to get a mortgage on their house which they own outright to help sort out my finances. I need to borrow £25k over 5 years. I think that one of the low fees/higher interest rate mortgages would be better due to the low equity I'd be borrowing...could anyone help me by showing me the best place to look for these deals and if they are applicable for a mortgage on a house that is already owned by the applicants.

Thanks a lot in advance!

Ben.

kingstreet

You need lenders who will allow a remortgage of an "unencumbered" property. Unfortunately, it's going to be down to pure legwork as there's no website which filters products on this basis.

First thing you have to do is work out if they want a fixed or variable product. I agree with your point about fees/rates. A no-fee product with free legals and a free valuation should be top of your shopping list.

Ben27

Thanks a lot kingstreet, that's really helpful. I'm going to be paying off the loan, just they are going to be taking it out in order to get cheaper borrowing. At least I know what type of mortgage I am looking for now!

If I went to a mortgage expert would they be able to help me more on this?

Cheers!

Ben

kingstreet

TBH a broker would get around £75 for arranging such a deal, so you're likely to have to pay a fee to them on top to make it worthwhile. The arrangement part of the mortgage takes the same time and effort as a £250k mortgage, but the rewards are based on mortgage size. If it is worth it to you to save you time and potentially get you the best deal, by all means talk to an independent or whole market broker.

Ben27

OK, that makes sense. So probably better for me to spend a bit of time hunting around myself then. Thanks very much for your helpful and honest advice.

Ben.