Mortgage Advice Please

slackbladder

Hi All,

I split up with my wife in 2009, and a couple of years ago I removed her name from the mortgage. My mortgage provider wouldn't give me the mortgage on my own so I added my sister's name through a transfer of equity.

My mortgage is interest only.

I was looking to remortgage next year and getting off interest only (which was only a temporary solution at the time). I chose next year because this year I am saving for another wedding! However, my sister has now decided she wants to get a mortgage of her own, and to come off my mortgage asap.

I now earn a much better wage so I don't think getting the mortgage in my name only will be a problem.

But it doesn't make much sense to pay the transfer of equity costs to remove my sister now, and then to pay remortgaging costs next year.

If I could remortgage now, remove my sister's name at the same time, and perhaps go interest only for the first year - is that even feasible do you think?

Or an alternative may be to do the transfer of equity now, remain on interest only and make overpayments from next year. But would a mortgage provider be likely to let me remain on my current mortgage if I did a transfer of equity now?

I realise I will need to speak to my mortgage provider but just wanted to see what advice you guys may have about possible options for me.

Much appreciated!

ACG

Its unlikely they will allow you to stay on interest only (but you need to check with them).

Also doing a transfer of equity will be needed and need to be paid for regardless of whether you do it now or at time of remortgage.

Whilst it may not make much sense to you, having been in your sisters shoes I would say your wrong. She wants to crack on with her life and you wanting to hold fire to save yourself a bit of time/paperwork is pretty selfish considering she helped you out when you needed her.

slackbladder

I didn't mean for my post to come across that I was trying to stop my sister from moving on - I'm not at all. I perfectly understand and agree that she has to do what is right for her, and I would never do anything to compromise that. I was just seeking advice as to how to minimise the financial impact that would have on me.

Ok - so I wouldn't reduce costs by remortgaging/transferring equity all at the same time? That is useful to know.

And, a transfer of equity will therefore involve the mortgage provider reassessing my current mortgage deal, is that right?

dimbo61

Maybe one for a broker !
You are getting married, can your wife to be go on the mortgage and her income be taken into account.
Is your sister due any money ?
New MMR rules and your LTV, equity, age will decide if you can get a new better deal.