Mortgages available when I own my home - unusual request for help!

ahrimaniac

Good morning all

I wonder if anyone can kindly help. I'm looking for a basic guide to mortgages but I want to avoid anything that isn't going to be pertinent to what I'm after. So forgive me for asking outright but where better to ask than here...

My position is that I have been given a house – it's completely in my name – from a friend of mine who no longer needs it. I'm very lucky.

The condition was that I'd pay the capital gains tax that results – looking at about £20k. Fair enough!

I'd also like to do quite a considerable amount of work to the house, including a new boiler, windows, decorating throughout, so I'm looking for a mortgage of about £50,000.

The house is worth £225,000 and both me and my partner are in full-time work – although the house is entirely in my name, as will the mortgage (he has crap credit history, mine is (hopefully!) perfect.

From what I can see, mortgages tend to be geared to those who don't own their house, rather than someone who owns it and wants to borrow against it, but my understanding isn't exactly grand.

Ideally, I would like to have a mortgage where I can overpay or pour as much of my disposable income into it as I can. Currently, we have a disposable income of about £1000 left a month.

As a starter for ten, can anyone give me some advice as to the type of mortgage I should be aiming for? Is a mortgage even the best way to do this? I did think about a loan but I can't find one for £50k unsecured,so I thought mortgage might be better – but you may know better!

Thank you all in advance

J

GMS

How long have you owned the property? Most lenders will want 6 months ownership prior to remortgaging.

What is your income? Yours alone would need to be sufficient to support the mortgage.

Expect questioning as to how you acquired the property and as to why a friend would simply give it to you.

A broker may be useful here as they can speak to lender contacts to see how the case sits.

ahrimaniac

Yep - going to arrange to speak to a mortgage broker, have to find one first...eep.

The switch on the properties happened last week so I suppose I've only owned it for one week. Didn't know that about the six months thing, that's a kicker (but not a massive problem).

My salary is £22k. I don't know whether they could include this but my partner's (civil-partnered) salary is paid direct to my account too and he's paid £17k, so generally we about about £2500 coming into the account monthly.

Thanks for your help!

Dave_Ham

There are a handful of lenders where they do not have the 6 month ruling for legitimate reasons such as yours.

Broker should be able to nail this for you, although no lender is going to include income not yours unless part of the application.

Good luck

ahrimaniac

I thought that would be the case - right - mortgage brokers are the way to go! That can be the next thing to look into...!