Cost of remortgaging house

luanmahi

My husband and I are looking to remortgage our house and want to know how much this will cost. I bought the house in 2005 with my mum on the mortgage as I didn't earn enough at the time to get a mortgage only in my name. We're currently on SVR which is going up in September and we would like to look for new mortgage. Ideally, we would like to take my mum's name off and replace it with my husband's. However, we are hoping to move house in a year so want to know if it's worth it.

harvey115

There are two things you are trying to do here:

TOE - Transfer of Equity
Re-mortgage

Although it makes sense to do both on the same time, I am not sure how easy it gets when done together. Maybe one process after the other would make more sense TOE followed by remortgage.

Wh05apk

If you do both together, then assuming you get free legals with the remo, they are doing half the work of the TofE, you will just have a little extra to pay.

Depending on the figures there may be a stamp duty liability.

Again depending on your figures and your current lenders SVR, you may do best to stay put if you are looking to move anyway, then at least next year, you will start fresh, looking for the best deal then, rather than being tied to your existing lender.

holly_hobby

TOE (mum off replaced by husband), and as part of a rmg deal is not difficult - but can be costly depending upon the deals sourced.

Subject to Hubby satisfying the lenders status checkes, the TOE exercise will have a standalone (in addition to free legals) circa £400 - however the nationwide panel of solicitors routinely used for std free legals (and only eligible on a straight forward rmge), may not actually be able to administer the TOE, regardless of any extra fee, for operational and service reasons.

Whenever there is a rmge and TOE going on, I always say to firstly obtain a conveyencing quote for the reqd legals (where the TOE fee as part of the conveyencing package can generally be less then the standalone fee).

Then source the top market leading remge deals (regardless of free legals or not), and also determine the best free legals rmg deals available (don't forget to add on the TOE fee).

Then do a direct true cost comparison - to which you may surprisingly find that the rmg (with no free legals), actually has both a lower payrate, lower ERPs and overall lower admin/arrangement costs, than the lowest "fee free" rmg deal sourced (which should inc the additional TOE costings don't forget).

If you/your Hubby are not paying Mum (either with money or goods) for the transfer of equity (i.e equity has not been exchanged for consideration), there is no stamp duty land tax payable on the TOE - so don't fret about that unnecessarily.

You need to spend an hour with an experienced whole of market mortgage broker, whom will understand how to price and compare the deals for you.

Hope this helps

Holly