Getting married mortgage advice ...

buzzlightyear1804

Hi All,

So a summary of the situation ...

I've got 1/2 my mortgage on a 1.1% above base rate for life with about 18 yrs to go (long story, had it for ages and have kept it for last move cause of divorce)
Other 1/2 on a pretty standard variable at a OK rate.
Both with RBS.

Partner has no mortgage on lets say 500k house. Now I could just sell my house (lets say 200k) and we just pocket the equity (40k) or what I was thinking if I could take a %age equity in her house funded by a mortgage.
I was wondering what the options normally are, can I transfer my mortgage to "invest" in my partners house - I do want to invest in property again and really don't want to lose the low mortgage I currently have. P.S I'm happy to drop the higher rate 1/2 of the mortgage.
Would I need to take out a new mortgage instead? What about Stamp Duty ?

Thanks for any help

Buzz

Mortgage_Mark_2

Stamp duty is a consideration as you're effectively buying part of the property from her, so it will be due if applicable, on the share that you're buying.

Be aware also lender rules around second properties - which property are you going to live in? I'm assuming that one will be rented out, and that one you'll either need consent to let or to remortgage onto a buy to let mortgage, as you'll more than likely otherwise be in contravention of your mortgage deed by letting it out.

All the best

Mark

buzzlightyear1804

Living in the 500k property, and no the other house will be sold, thats why I thought it was an odd situation. Its basically me asking if in principle the banks let you transfer your mortgage (or some of it) to a new property already owned by my wife to be.

I must admit I assumed I would have to sell up, pay off the old mortgages and then re-mortgage on her house to gain a stake in it - the idea of keeping the old mortgages was raised by a friend .. he wasn't sure though.

Regards

Buzz

TrickyDicky101

Is she happy at the thought of you taking a stake in her house? It increases the risk to her by having a secured debt on the property that she would need to be a joint party to.

buzzlightyear1804

Yes she is happy with that.

Buzz

dimbo61

Getting married mortgage advice ...
When you get married you share everything 50/50
So what do you hope to achieve?
Move in with partner and rent out your home?
Sell up and enjoy money together?
Age,income,kids,savings, pensions etc are all important in long term plans

buzzlightyear1804

Ok, I'll be a little clearer, we have both done the children bit, this isn't a first home or 2nd or 3rd home purchase, the personal bit is not really the interest here.

Her house (paid off) is hers, I want it this way, if I have a stake in her house I pay for it, hence the question re transferring the mortgage I currently have.

Buzz

Mortgage_Mark_2

Whether your current mortgage is possible to 'port' depends on the mortgage itself. If you're currently in a fixed rate for example then you might well be able to (subject to full underwriting).

If you're on the lender's SVR then you have no mortgage product to port, so you would need to sell & take out a new mortgage.

Mortgage porting was generally designed to save people paying a full ERC if they had to move house in an initial product period. The original underwriting was for a totally different house at (presumably) a very different value, remember; therefore the risk profile will have changed from the lender's point of view, hence the new underwriting/new mortgage.

Best wishes,

Mark

pjread

hmm... well, does she actually need the cash? Some kind of private "mortgage"/agreement might be worth considering if not (you can then split the "interest" which would otherwise go to a lender between you?)

I've never really understood the separate money thing in a marriage but if you do think that way then this sounds more sane to me. Or she could even say transfer the house to a company with 500 shares, and give you an option to buy a share a month at £1020 or something until you have 250 each, then dissolve the company. A bit extreme but should protect everyone's interests?

TrickyDicky101

For you to take a mortgage on her house, she MUST be on that mortgage too (you can't have fewer people on the mortgage than there are on the property register). This transaction does not work if it is just you who wants a mortgage on the place.

kingstreet

I don't know any lender which will port on a remortgage of an unencumbered property during a transfer of equity and as mentioned, she would have to become a borrower if you want to own jointly.