Remortgaging Advice

I've had an idea to try and pay my mortgage off quicker/reduce the amount of interest I pay.

My current deal is this: Halifax SVR (3.99% just now)
About £124,000 outstanding, property value is £145,000
Monthly payment of £574, monthly over payment of £300 taking it up to £874 paid in each month.

My mother has a property that has alot of equity in it and is lucky enough to have a current mortgage deal that has a 1% interest rate.

If it was possible for her to take out a further £124,000 against her property at 1%, allowing me to pay off my mortgage and thereafter work at paying back that amount to her, can anyone suggest the potential pit falls? Even if for some reason I had to remortgage my property in 3 years time to pay it all back, I'd have paid off alot more in those 3 years than I would have if I'd stayed on the Halifax SVR.

What I'd really like to know is, what charges, if any are there once a property has been completely paid off?

Also, if a property is completely paid off, and you then want to put a mortgage on it, is that as straight forward as a normal remortgage or are there other costs involved?

Obviously I'd need to find more out about the deal my mother has, I think it's linked to the base rate, but lets assume it stays at 1% throughout the time I borrow from her.

Thanks in advance for any advice.

Replies

  • Lois_ELois_E Forumite
    2.2K Posts
    Ninth Anniversary Combo Breaker
    ✭✭✭✭
    Begin by checking whether your mother's lender will actually let her add more borrowing at the same 1%. I suspect they won't, but it would be worth finding out.
    Starting again 13/4/19
    Home loan 1: £21,102.50 Home loan 2: £7,698.99
    Total owed: £28,801.49
  • They will. Does anyone have a helpful response?
  • rookie07 wrote: »
    They will. Does anyone have a helpful response?

    How rude! You'll be lucky to get anymore responses after that.
    :j Trytryagain FLYLADY - SAYE £700 each month Premium Bonds £713 Mortgage Was £100,[email protected]/6/08 now zilch 21/4/15:beer: WTL - 52 (I'll do it 4 MUM)
  • Lois_ELois_E Forumite
    2.2K Posts
    Ninth Anniversary Combo Breaker
    ✭✭✭✭
    That's lucky!

    Afraid I haven't got mine completely paid off yet, so I don't know the details of what happens when you do! Maybe somebody else will be along soon who can help. If you don't get any joy here on MFW, you might try asking on the main mortgages and endowments board - there might be somebody there who knows the answers to your questions. This is really more of a support board for people trying to overpay than an advice board about the technicalities of mortgages.
    Starting again 13/4/19
    Home loan 1: £21,102.50 Home loan 2: £7,698.99
    Total owed: £28,801.49
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