We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Can you easily extend a mortgage?
Mrs_pbradley936
Posts: 14,573 Forumite
We have an offset mortgage at a great rate which is .8 over base.
It has about 3 years left on it and we are not "borrowing" very much at the moment.
Our son wants to buy a bigger house (has a flat at the moment) and the best rate he can get is 6%. We want to borrow on our house and lend my son say £100K We could give it to him and if we live for more that 7 years he will not have to pay Inheritance Tax on it.
I very much doubt that we could extend our mortgage at the very favourable rate but would they? Even if they do not would we get a much better rate than our son taking loan to value into account?
Our house is worth about £650K.
It has about 3 years left on it and we are not "borrowing" very much at the moment.
Our son wants to buy a bigger house (has a flat at the moment) and the best rate he can get is 6%. We want to borrow on our house and lend my son say £100K We could give it to him and if we live for more that 7 years he will not have to pay Inheritance Tax on it.
I very much doubt that we could extend our mortgage at the very favourable rate but would they? Even if they do not would we get a much better rate than our son taking loan to value into account?
Our house is worth about £650K.
0
Comments
-
New borrowing will be at current rates. The lender will wish to know the purpose of the equity withdrawl.
Likewise your son's potential new lender may be uneasy about such a sizable gift. As that's what it'll need to be not a loan.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 353.9K Banking & Borrowing
- 254.3K Reduce Debt & Boost Income
- 455.2K Spending & Discounts
- 246.9K Work, Benefits & Business
- 603.5K Mortgages, Homes & Bills
- 178.3K Life & Family
- 261.1K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.7K Read-Only Boards