Re-mortgage query

Pandastyle_2

Hi all,

I have a slightly odd situation regarding a re-mortgage and was wondering if anyone had been in a similar situation?

I was able to get an mortgage for £112k under my name to buy my home with my parents 'gifting' me the remaining £110k.

We decided to do it this way as although my partner and I had been together for a while, we weren't entirely comfortable with getting a mortgage together so quickly. 2 years down the line, we are still happily living together and as the introductory mortgage rate is going up soon, we would like to re-mortgage and pay my parents back the original gift amount (less what we have paid off over the past two years). This way, my partner would be on the mortgage too and we would own it completely.

Does this seem feasible? We both have very good jobs and income, very little debt on credit cards and have been making improvements to the house over the past two years to increase the value. Has anyone re-mortgaged for this much more before? It would be an extra 90k(ish)

Many thanks!

Pandastyle

kingstreet

Gift? Doesn't paying it back somewhat make a lie of that?

Either way, you're applying for a joint mortgage and carrying out a transfer of equity to add your partner to the ownership at the same time.

Some lenders may have an issue with the purpose of the increased borrowing, some won't.

Pandastyle_2

Thanks for the reply. Yes I can see why you would say that - I suppose it could be looked at that way.

Personally, I see the gift as helping us get the house in the first place but I would like to pay back to them as it was such a huge amount of money. I do feel guilty about it, even though they don't make me feel that way.

Is adding a partner onto a mortgage difficult? He's got good finances and a better wage than me!

kwmlondon

Sounds feasible to me. I'd strongly advise going to see and independent financial advisor to arrange the mortgage. My experience of using an IFA has been excellent.

Pandastyle_2

Thank you for the reassurance!

Yes, we're going to use the mortgage broker that helped me get such a good deal the first time around and knows my situation. As it's a slightly odd way of doing things, I wanted to get an view if it's even possible before we tried.

Unfortunately, it's extremely difficult for first time buyers to get on the ladder. I was extremely lucky to have my parents help and would like to be able to repay that if at all possible.

kingstreet

As long as affordability is good and the loan to value withing what the lender will accept, it should be fine.

Thrugelmir

Problem is you are going to require a high LTV mortgage. So you may find your outgoings rise considerably.