Is this possible?

Missmaye

Il explain the situation and hopefully some one here can help!

My mother kindly lent myself and my partner a large sum of money to purchase a house as we both didn't have the best credit ratings.

This money was given as a gift and she didn't want it returned but after some family issues we want to give the money back.

The house we purchased was £200k we got a mortgage with aldermore for £150k on a 2yr fixed. In total my mum gave us £85k. £50k for the house and £35k do it up (had no kitchen or bathroom) also cleared a loan (conditions of the mortgage)

Our mortgage is over 28years and is £750pcm this is a lot less than our rent that we used to pay for. So after along discussions and looking at budgets we can afford to repay my mum £700pcm.

What I was thinking was if I repaid (700) over 6 years then I would have repaid over £50k back I would of also paid around £17k of my mortgage.

Could I remortgage for what I owe on the mortgage plus the additional £34k that I want to give back to my mum? I'm hoping after 6 years and the works planned worse case scenario that the house would be worth £210k.

Is this possible? Would I be able to remortgage and release additional equity? Or am I kidding myself!

Thanks

kidmugsy

Missmaye wrote: »

My mother kindly lent myself and my partner a large sum of money to purchase a house

But you say it was a gift? Anyway, if it was treated by both sides as a gift, then that is what it was I suppose. So you're not really proposing to pay back her loan, you are planning to gift her the same amount she gifted you. It might be wise to phrase what you are doing carefully whenever you are speaking/writing to a mortgage provider. Don't say "we are repaying my mum £700 pcm", say that you are gifting her that amount.

~Beanie~

I don't think anyone will be able to answer your question as who can predict what the situation will be in 6 years time.

HappyMJ

Missmaye wrote: »

Il explain the situation and hopefully some one here can help!

My mother kindly lent myself and my partner a large sum of money to purchase a house as we both didn't have the best credit ratings.

This money was given as a gift and she didn't want it returned but after some family issues we want to give the money back.

The house we purchased was £200k we got a mortgage with aldermore for £150k on a 2yr fixed. In total my mum gave us £85k. £50k for the house and £35k do it up (had no kitchen or bathroom) also cleared a loan (conditions of the mortgage)

Our mortgage is over 28years and is £750pcm this is a lot less than our rent that we used to pay for. So after along discussions and looking at budgets we can afford to repay my mum £700pcm.

What I was thinking was if I repaid (700) over 6 years then I would have repaid over £50k back I would of also paid around £17k of my mortgage.

Could I remortgage for what I owe on the mortgage plus the additional £34k that I want to give back to my mum? I'm hoping after 6 years and the works planned worse case scenario that the house would be worth £210k.

Is this possible? Would I be able to remortgage and release additional equity? Or am I kidding myself!

Thanks

They would probably only give you 75% of the property's value at that time and maybe extend the term to reduce the repayment. There are so many variables I couldn't say for sure.

You could get a personal loan and gift that to your mother...but then what would you put down as the purpose of the loan. I doubt any lender would accept gift as the purpose.

Did you really spend that much money on improving the house and not add any value to it. Seems a strange thing to do...