Avoiding early-repayment charges when I buy ex-partner out?

ab5

My partner and I separated last year, but still have a house in joint names, with a joint mortgage.

We are still on amicable terms, and have agreed that I can buy her out, but don't know the easiest way to do this. It is a fixed rate mortgage (until April 2008, with large early-repayment charges) with the Portman. I had been expecting to be able to:

1) Change the house and mortgage into my name
2) Either increase the amount of the current mortgage or get a second mortgage in order to release the necessary money.

However, upon first request, Portman has said that we have to terminate our current mortgage (incurring the repayment fees), and start afresh. Is this normal, or should I be pushing for a change in name?

Finally, I may wish to let the property in the future - should this affect my actions at the moment?

Thanks.

JoeK_3

Whichever way you go, if you try to move the present mortgage, you will need to pay the redemption fee.

Post your details such as property value, mortgage amount, current interest rate, redemption penalty, your income etc. but it looking like either a secured loan or a wait until next year, if you are not prepared to pay the redemption fee.

JoeK.

ab5

Many thanks JoeK,

So a straight name change is likely to be out, then?

Here are the current details:
House value 190k
Current mortgage balance 95,500
Interest rate fixed at 4.99 until 29Feb2008
Early repayment charge of 3%
However, I can repay 10% of the balance without penalty, so I guess I'd do that first.
When I re-mortgage, I'll need to raise an extra 50k. My income is 40k, so I hope there won't be a problem with that.

Cheers.

JoeK_3

Based on what you have posted I see no reason why your lender will not agree to a transfer of equity.

I can only assume that you tried to ask for a further £50,000 and it was outside their income multiples.

If you can't wait until April 2008, you could apply for a secured loan for a further £50,000. This way you would leave the mortgage with the Portman until April 2008, when you could remortgage for the total amount and not have to incur the penalty.

JoeK