Can i keep my brilliant tracker deal

freddie147

Long time browser but this is my first post. I will try and keep as brief as possible.

I have a very good long term tracker deal with Barclays, 1.39% above base that was taken out in 2008. Due to house price falls the house is worth approximately the same as the outstanding mortgage so no equity worth talking about.

Here is where it gets complicated. My partner is moving in with me and will contribute equally to all household bills and mortgage costs etc. She wants (and so do I want for her) to have any benefit in price increases say in 5 or 10 years time should we sell or split up. Hopefully will not happen but better to have things right from the outset.

I do not want to remortgage to put her name on the deeds as I will definitely not get 1.39% above base. Plus to get an attractive deal would involve paying money off current mortgage to bring loan to value down.

Is it possible that barclays would add her to the existing mortgage without losing the deal I am currently on. If so what is involved in this process.

Or as a second thought can the mortgage stay in my name but something legal can be drawn up to protect my partner's share in any price increase should we sell or split down the line.

Appreciate your time for reading and thank you for any info you provide.

R_P_W

Personally I wouldn't do it. You paid the deposit and have been paying the mortgage for the past 5 years. Why don't you pay the mortgage and she just contributes to other living costs? I wouldnt be in any rush to sign away half your home!

freddie147

I am thinking that if I were to try and sell now it would cost me a couple of grand with fees and slight negative equity. With partner moving in we can both invest in the property. Definitely needs a new kitchen and bathroom and overall decor refreshment. We will be saving a lot of money by moving in together with only one set of bills between us and we are both happy to invest in improving the home property.

getmore4less

R_P_W wrote: »

Personally I wouldn't do it. You paid the deposit and have been paying the mortgage for the past 5 years. Why don't you pay the mortgage and she just contributes to other living costs? I wouldnt be in any rush to sign away half your home!

That money is gone for nothing,

the OP is sitting on net debt if they sell up.


They are not giving up 1/2 a house(they don't own one).

They are sharing the risk/reward of ownership.

What they do have is a very good mortgage rate that is worth more that the house.

originalmiscellany

Just get married
Then you share everything equally!

wrenlegs

WE are coming to the end of an endownment and I will be finding out the very same thing. Do I pay the lump sum that we owe or can we add it to the repayment mortgage which is tracking at silly numbers? We dont want to lose that mortgage. Im hoping we can add the excess on as Im desperate to buy a new kitchen (ours is 1960s ). If the bank say no, we have to hand over our life savings to keep our cheap as chips rate.

I think the best thing for you to do, is make an appointment to see your bank and discuss all of your options. There may be ways around it all that you wouldnt have even thought of. we are arranging a meeting soon to discuss our options. Fingers crossed we can add the left overs of the endownment to the repayment at the low rate...

getmore4less

wrenlegs wrote: »

WE are coming to the end of an endownment and I will be finding out the very same thing. Do I pay the lump sum that we owe or can we add it to the repayment mortgage which is tracking at silly numbers? We dont want to lose that mortgage. Im hoping we can add the excess on as Im desperate to buy a new kitchen (ours is 1960s ). If the bank say no, we have to hand over our life savings to keep our cheap as chips rate.

I think the best thing for you to do, is make an appointment to see your bank and discuss all of your options. There may be ways around it all that you wouldnt have even thought of. we are arranging a meeting soon to discuss our options. Fingers crossed we can add the left overs of the endownment to the repayment at the low rate...

Do you have a single rate and term for both bits?

chances are the endowment part just continues interest only till the end of term and thats when the lender expects payment, you still need a plan to pay that off if you keep the endowment payout for other purposes.

freddie147

I was talking over with a couple of mates last nite and one mentioned that some kind of deed in trust could be drawn up fairly simply by a solicitor. It does not affect the existing mortgage but stipulates what happens with any funds left over after clearing mortgage debt. Will make appointment with a solicitor after the hols.

getmore4less

freddie147 wrote: »

I was talking over with a couple of mates last nite and one mentioned that some kind of deed in trust could be drawn up fairly simply by a solicitor. It does not affect the existing mortgage but stipulates what happens with any funds left over after clearing mortgage debt. Will make appointment with a solicitor after the hols.

Be carefull many solicitors are numties when it comes to numbers(except billing) and get these trust deeds very wrong.

As well as equity you also need to cover exit plans for various changes in circumstances and the maintanence and improvment costs


Come back when you have something so people can check it for any flaws.


The most common mistake is not doing the equity properly and having cash extractions.

wrenlegs

getmore4less wrote: »

Do you have a single rate and term for both bits?

chances are the endowment part just continues interest only till the end of term and thats when the lender expects payment, you still need a plan to pay that off if you keep the endowment payout for other purposes.

Thats whats happened. Its the end of the term and we have to pay up (in June). Weve saved enough to pay it off as a lump sum, but would prefer to add it to the other interest free mort we have running alongside it so that we can us the cash we saved for a new kitchen. BUT if by adding it to our cheap rate mortgage, the rate changes, we'll just pay it off and keep the cheap mortgage. I hope this makes sense

freddie147

thanks getmore4less. I will let you know what solicitor says. I am happy to keep things fairly simple and on a 50 /50 basis for maintenance costs and any future equity.

I suppose the complicated bit is putting some detail in that stipulates my partner must pay half the mortgage cost to me on a monthly basis. I then make the mortgage payment. We have no children so on death of either partner their equity share will go to the surviving partner.