Inherited property: will mortgage providers frown on buying out sibling not in will?

AdrianC

If probate has been granted and everything sorted out, then the house is your house in your sole name and - presumably - without any mortgage on it. Getting a 50% LTV mortgage for whatever reason you want should not be an issue at all.

The fact it used to be your mother's house, and you want to give the 50% to your brother is irrelevant to the lender.

I presume that you'd be eligible for a mortgage, of course.

IFTB

Hi everybody,

Adrian was correct and I'll explain why.

Because I'm inheriting the house and not buying it, I do not hit the six month rule. It's an ownership transfer, not a sale, which means lenders don't need to adhere to the six month rule.

This has been confirmed to me by NatWest, Barclays, Virgin Money, and Which? Mortgage Advisers.

Some lenders still wait six months but not the major ones.

Also they didn't care that I was using the money to pay my brother.

Anyone inheriting a house should be aware that, in my experience, a lot of people you'd think you can trust are clueless over the matter. You're much better off doing your own research, including using this forum!

Thanks to everyone who replied and I hope others find it useful.

IFTB

Just so others are clear, I was seeking to get a mortgage on an inherited property in order to pay off a pre-existing mortgage (or charge) on the property and give my brother a share of the property's value.

I was originally advised, by a mortgage adviser from a large company, that I'd hit the six month rule, only a couple of lenders will touch the situation, and therefore had to buy the property instead.

I have since discovered that this is FALSE.

I'm inheriting the property (and its debts) and transferring it into my name, so there's no six month wait from major lenders.

As I'll already own the property, it is a remortgage.

I hope that's nice and clear should anyone need this in future!