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New mortgage and keep the old?
mintymoneysaver
Posts: 3,527 Forumite
Hi, I currently have a joint mortgage with my ex husband of £37,000. This is on a fantastic tracker rate of 0.5% above base rate.
Husband and I have now separated, and at some point in the future, though he is not in any rush, I hope to buy him out and would probably need about £40,000 more to do this.
At the moment I only earn £24,000 but from September will be on a wage of about £34,000.
Would I be able to keep the mortgage on the great rate, and then get a new rate for the other £40,000 or would I have to totally remortgage and lose the original rate? I am sure ex would be as helpful as possible in writing letters, stating no further interest, or taking his name off deeds etc.
Husband and I have now separated, and at some point in the future, though he is not in any rush, I hope to buy him out and would probably need about £40,000 more to do this.
At the moment I only earn £24,000 but from September will be on a wage of about £34,000.
Would I be able to keep the mortgage on the great rate, and then get a new rate for the other £40,000 or would I have to totally remortgage and lose the original rate? I am sure ex would be as helpful as possible in writing letters, stating no further interest, or taking his name off deeds etc.
0
Comments
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Transferring mortgage to your name will require a new application. So a new product.
Consult a solicitor regarding the formalities.0 -
As you will be releasing extra finance as part of the Transfer of Equity (TOE), you should be able to retain your current deal, and have the extra finance (effectively a further advance) on a product from their range at that time - so ineffect you will have 2 products. You may of course also choose to switch the entire mge to a new deal at that time (which may incur ERPs).
The further advance request will also require a new survey to be conducted on behalf of the lender, and also a full affordability test to ensure that you are able to service the mge on your sole income.
Your TOE solicitors fee will be circa £400.
Hope this helps
Holly0 -
A transfer of equity with further borrowing to purchase equity is fine in principle. As H said, it's subject to status and valuation and will carry fees in the region of £600+.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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Depending on your lender you should be able to keep your current deal with the extra on a new deal.I am a mortgage adviser.You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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They will most probably lie to you and tell you that you have to take out a new dea las you are on a very good rate. Do not buy their lies0
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