Can this be done?

Vegeta

I have a friend who wants to buy another house but can't without help getting a mortgage with someone else (close family member) who has a much better income.

Her house is fully paid off and is solely in her name. She wants to remortgage the house for a deposit to buy another as an investment. Can she get this close family member to remortgage her own fully paid house, jointly as this close family member isn't on the deeds for her house.

Thrugelmir

Vegeta wrote: »

She wants to remortgage the house for a deposit to buy another as an investment.

You'll need to find two accomodating lenders. As some reject release equity requests for such a purpose. Others the source of the deposit.

Vegeta

Thrugelmir wrote: »

You'll need to find two accomodating lenders. As some reject release equity requests for such a purpose. Others the source of the deposit.

So my friends family member can take out a joint mortgage on my friends house despite not being on the deeds or would they have to be added to the deeds via a solicitor first before applying for a remortgage?

kingstreet

You do a transfer of equity at the same time as the remortgage, although a couple of lenders will permit more borrowers on the mortgage than owners of the property.

Check stamp duty situation in such circumstances;-

http://www.hmrc.gov.uk/sdlt/calculate/transfer-ownership.htm

As a matter of interest, if the remortgage is being used to raise the deposit, where's the rest of the purchase money coming from?