Remortgaging soon with added partner

Stellar_Star

Hi MSE folks, just a quick question.

I have my RBS 5 year fixed rate ending soon and I have lived with my partner for some time now in my house (100% owned by me). She has a large sum of money (20k). We intend to remortgage to both our names on the deeds and add the 20k to lower the LTV value and hopefully get a better mortgage (currently about 20k in equity, but unsure if the house has risen in price in the last five years). The only question we have at the minute is:

Do we wait till the current fixed dealwith RBS ends and then overpay the mortgage with RBS by 20k and add my partner onto the mortgage and THEN remortgage to another provider?

OR

Do we wait till the current deal with RBS ends, get ready to remortgage to a different provider and THEN add the name to the deeds with the new mortgage provider and give the new bank the 20k funds in the initial application phase (not sure if its possible to move a "one" person owned house to another provider and change it to two on route)

Just wondering which option would be easier/less paperwork/less stressful.

Also, if we go for a long fix, how common is it these days for a lender to allow a port if we want to move (ERC's are a problem....).

Thanks in advance!

Stellar_Star

Anyone?

kingstreet

Stellar_Star wrote: »

Do we wait till the current fixed dealwith RBS ends and then overpay the mortgage with RBS by 20k

Possibly. Your call

and add my partner onto the mortgage and THEN remortgage to another provider?

No. The transfer of equity cost is likely to be greater doing this than doing it as part of a remortgage. As long as you plan to remortgage and not go back to RBS for a customer retention product, which isn't actually a remortgage.

Do we wait till the current deal with RBS ends, get ready to remortgage to a different provider and THEN add the name to the deeds with the new mortgage provider and give the new bank the 20k funds in the initial application phase

That would be my preferred option. You can either pay the £20k off the existing RBS mortgage or pay it to solicitor handling remortgage and transfer of equity to put with new mortgage funds to repay old one.

Also, if we go for a long fix, how common is it these days for a lender to allow a port if we want to move

Many mortgage rates are portable, but don't forget it's moving the rate from an existing mortgage to a new one and you have to satisfy the lender's criteria, affordability and valuation requirements to qualify for that new mortgage.

There is no guarantee.

Stellar_Star

Thanks for that information, it's helped sort out what the best plan of action is.

The only spanner now in the works is not be tempted by the RBS Retention product, which actually isn't looking too bad as long as I can get them to up the house value on the phone (they do it on the phone by looking at the HPI index) and it might save a lot of faff (fees/credit checks etc).

Thanks again.