Can I transfer my mortgage to my sister?

rjwhi87

Currently I have an interest-only mortgage on a flat, which we got in 2008. Think it was 95% mortgage. My name was used by my parents when buying it to avoid paying the second mortgage tax, and as they were buying it for my to live in during University. The mortgage is in my name still and the mortgage comes out my bank account.

Due to family circumstances, my mother has now moved into the flat and currently pays the mortgage herself, and I now am about to rent in a different city with my girlfriend. We would like to buy our own flat but obviously the existing flat in my name proves a problem. I don't want to force my mother out of the flat, but my partner is keen to get herself onto the property ladder too.

I have a younger sister in University and at pretty much the same position as I was when we got the flat.

1) Can I switch the mortgage over to her name? We're with C&G. She is 20 years old student.
2) Could my mother take the mortgage on? She's in her mid 50s, current has a mortgage with my father but lives in the flat.
3) What would happen if none of these were possible, I wanted to keen the flat in my name but buy another flat with my partner? Would I have to remortgage the existing property to 'Buy-to-Let' and say the new one would be my new home?

Any help would be very much appreciated.

BobQ

rjwhi87 wrote: »

Currently I have an interest-only mortgage on a flat, which we got in 2008. Think it was 95% mortgage. My name was used by my parents when buying it to avoid paying the second mortgage tax, and as they were buying it for my to live in during University. The mortgage is in my name still and the mortgage comes out my bank account.

Due to family circumstances, my mother has now moved into the flat and currently pays the mortgage herself, and I now am about to rent in a different city with my girlfriend. We would like to buy our own flat but obviously the existing flat in my name proves a problem. I don't want to force my mother out of the flat, but my partner is keen to get herself onto the property ladder too.

I have a younger sister in University and at pretty much the same position as I was when we got the flat.

1) Can I switch the mortgage over to her name? We're with C&G. She is 20 years old student.
2) Could my mother take the mortgage on? She's in her mid 50s, current has a mortgage with my father but lives in the flat.
3) What would happen if none of these were possible, I wanted to keen the flat in my name but buy another flat with my partner? Would I have to remortgage the existing property to 'Buy-to-Let' and say the new one would
be my new home?

Any help would be very much appreciated.

(1) Very unlikely the mortgage provider will do this. First question arising is whether the property is worth less than "you" paid for it. You could sell the flat to her but would she be able to get a mortgage for 95%, I doubt it these days.

(2) you could sell it to to your mother. Would she in a better position to obtain a mortgae of a lesser amount?

(3) Basically yes but you are unlikely to get a BTL with this % mortgage and would your mother be able to pay a commercial rent to you.?

In short I suspect someone is going to have some cash to reduce the mortgage to a mortgagable amount.

Simon_gloster

Also transferring will involve selling it to her like if it was anyone ie subject buying selling fees possibly stamp duty.

LTV is too high and anyway the most a lender will is 80% ltv. You would also need to get a tenancy ageement for hr and charge rent.

You could however get consent to let it out. The mortgage debt will be taken into account but you could offset it with realistic rental. If you are on any form of variable rate with c&g you will lose it and go to around 6%. You wont he able to get around this as your new lender will require proof from your lender consent is granted.

holly_hobby

rjwhi87 wrote: »

Currently I have an interest-only mortgage on a flat, which we got in 2008. Think it was 95% mortgage.

Due to family circumstances, my mother has now moved into the flat and currently pays the mortgage herself, and I now am about to rent in a different city with my girlfriend. We would like to buy our own flat but obviously the existing flat in my name proves a problem. I don't want to force my mother out of the flat, but my partner is keen to get herself onto the property ladder too.

I have a younger sister in University and at pretty much the same position as I was when we got the flat.

1) Can I switch the mortgage over to her name? We're with C&G. She is 20 years old student.

This would be a transfer of equity, which is in essence what a house sale and purchase are, whether a mge is required, or money exchanges hands or not. Issues will be her residence, status and affordability.

rjwhi87 wrote: »

2) Could my mother take the mortgage on? She's in her mid 50s, current has a mortgage with my father but lives in the flat.

Her status and income would need to be sufficient to support all commitments (inc mge with Dad), the term may be restricted due to her age and the lenders max age paramaters.

rjwhi87 wrote: »

3) What would happen if none of these were possible, I wanted to keen the flat in my name but buy another flat with my partner? Would I have to remortgage the existing property to 'Buy-to-Let' and say the new one would be my new home?

You could request consent to let from your current lender, the issue may be the residence of your Mum, and any CTL permission (which may be on the basis of a commercial let only).

There may be an option to tsf to a regualated btl mge (regulated due to in excess of 40% being occupied/let to a family member).

If the CTL or BTL is obtained (proof of this & rental income/AST may be reqd), it is possible to source a lender whom will set aside the existing mge commitment when considering your status for your new primary residence mge.

A whole of market broker will consider your options and assist accordingly .... (don't forget rental income should be declared to HMRC via your annual return, even if no profit is generated)

Above are just the basics to get you started .....

Hope this helps

Holly