Mortgage on property I own outright

andyshouse

Hi....I'm renting at the moment and hoping to buy a property, I have 3/4 of the money in cash and the other 1/4 will come from a family member, if and when I've completed on a property, I am going to apply for a mortgage to repay the family member. My question is would it be a problem getting the mortgage as it would be neither a remortgage or house purchase as all the mortgage tables seem to mention.
Thanks

HappyMJ

andyshouse wrote: »

Hi....I'm renting at the moment and hoping to buy a property, I have 3/4 of the money in cash and the other 1/4 will come from a family member, if and when I've completed on a property, I am going to apply for a mortgage to repay the family member. My question is would it be a problem getting the mortgage as it would be neither a remortgage or house purchase as all the mortgage tables seem to mention.
Thanks

Why can you not just get a mortgage when you buy it?

holly_hobby

Yes, it may be as the loan is a personal arrangement - with possible money laundering connotations .

To obtain a mge post completion suggests you have earned income now, so as suggested, why not just get a mortgage at outset for the 25% your family member is going to advance ?

You're over complicating things at the moment.

Hope this helps

Holly x

andyshouse

I only wanted to do it this way to be in a position to offer cash to speed up the sale

Dave_the_Ginger_Cat

And money laundering considerations aside, I do believe this is classed as a remortgage.

As Holly says, you may be better off to get a mortgage now. There is no guarantee that you would get a mortgage, and it removes any uncertainty which would result from a family transaction which does not go as planned - this message board is full of these types of story...

viclspence

it would be classed as a re-mortgage but you must be aware that some companies will not give you a mortgage if the house has been sold within 6 months (may be a year) due to money laundering laws

HappyMJ

andyshouse wrote: »

I only wanted to do it this way to be in a position to offer cash to speed up the sale

Doesn't make difference in reality.

holly_hobby

Yes, if the reason was accepted, if would of course be a remortgage - with a 6 mth typical waiting period, and would be classed as such because the applicant (OP) would already hold legal title.

Sorry for any conufsion, as obv I was actually referring to a remortgage app in my orig post ... less haste as they say !

Issues re acceptability of the ER exercise and ML suspicions etc, etc, remain

Hope this helps

Holly x

Dave_the_Ginger_Cat

I also think you'll end up paying out more in fees to do what you suggest.

I'm a lender, we don't take forever to do a mortgage - we do them every day!

andyshouse

In the end I decided to get the mortgage from the start
Thanks for all the advice