Can i keep my brilliant tracker deal

kidmugsy

freddie147 wrote: »

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.

That sounds like the best bet but you'd need to see a lawyer to advise you not only on how to deal with your partner but also on how to do this without breaking the terms of your mortgage with Barclays. Your mates may be right. Remember to include a statement of what happens if the property should happen to fall in value.

getmore4less

freddie147 wrote: »

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.

This works currently because the mortgage is 100% of value.
I think it is a good idea to keep the capital aspects of ownerships seperate from the living in the house part.

That way mortgage, overpayments, repair etc can be kept at 50:50.

Living costs can be a bit more flexable if there is a difference in income

If you want the survivor to inherit consider joint tenants(which can be severed) otherwise it will require wills(that can be changed).

You also need to cover what happens if there is a loss of income.
one option is to build up emergency funds to cover a minimum period.

Thrugelmir

freddie147 wrote: »

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.

Enforcement of clauses such as this are very difficult. At a point whatever your legal agreement says. There has to be a high degree of trust between you.

Pay joint bills from an account that you both contribute to. Then there is full record of financial activity.

getmore4less

wrenlegs wrote: »

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

You should consider talking to your lender what the options are for the part that term ends June, they may extend the term on that at it's rate.

I doubt they will add it to the other part if it is on a lower rate, if they will they would probably do it now.

whats the term of the other bit, you still need a plan to pay of if they do extend terms.

getmore4less

Thrugelmir wrote: »

Enforcement of clauses such as this are very difficult. At a point whatever your legal agreement says. There has to be a high degree of trust between you.

Pay joint bills from an account that you both contribute to. Then there is full record of financial activity.

I think it is better to keep the house buying costs seperate from the living costs. A clear seperate account of the capital invested in the property and mortgage paid and building insurance, not mixed up with the other joint costs.

freddie147

just to add I will also talk to barclays as the simplest solution would be to add her to the mortgage. This will be a definite NO NO however if they insist on us picking a new deal as you ain't gonna get 1.39% over base again. I have no problem if they assess her income, credit worthiness etc as all should be fine in that regard.

The other worry in talking to Barclays is the original loan was a 90% loan to value product back in the good old days. I am currently at 100% loan to value. Worried in case they want property revalued if they agree to adding my partner. Double whammy of picking a worse deal and having to pay a lump sum down.

Wh05apk

You are looking at a "transfer of equity" to put the mortgage in joint names, your mortgage term/rate etc will remain the same.

Not sure if they will do at 100% LTV, although logic says as you are adding a borrower, you are improving their security so they should do it, you will need to see someone in branch preferably an experienced mortgage advisor, other wise they will just say no!

minimike2

freddie147 wrote: »

just to add I will also talk to barclays as the simplest solution would be to add her to the mortgage. This will be a definite NO NO however if they insist on us picking a new deal as you ain't gonna get 1.39% over base again. I have no problem if they assess her income, credit worthiness etc as all should be fine in that regard.

You will be allowed to do something called an "internal remortgage" to do the transfer of equity to add her to the deeds / mortgage account. You will be allowed to keep the rate you have, but a sanction will be required.

It will be assessed as a new application, to ensure her credit-worthyness and as part of that you will also be re-assessed. If you fit the lending criteria together then there is no reason why this shouldn't be able to happen and keep the rate.

There is a legal process it needs to go through and would take about six weeks - You can expect to pay £300 for the legal costs, unless you use your own solicitor and then it would be more.

freddie147

Would a new valuation be required for this process.