How Long Before Remortgaging?

mimik001

We are just in the process of purchasing our house through the council Right To Buy scheme. Because of my mum's age (78) I have had to get a personal loan so that we can do a cash purchase. I would like to remortgage to get a lower interest rate and monthly payments.

My question is - how long after purchasing do we have to wait before remortgaging? Or is this something we could do as soon as we have purchased?

Any advice anyone could give me would be gratefully received.

chelseablue

Here we go again

kingstreet

What makes you think your mortgage chances change when you want to remortgage, compared to purchasing with a mortgage?

You have a 78 year old party to the ownership either way and this is going to severely restrict your options in either scenario.

We have a RTB specialist who does post on here. Hopefully, she'll stop by and see this.

JimmyTheWig

Presumably they mean Transfer of Equity.
I presume that it was the mum who qualified for the hefty discount on the purchase, and the OP who wants to get her off the deeds and it solely in their own name as quickly as possible.

kingstreet

Doesn't a TOE constitute a disposal and trigger the repayment of the discount?

mimik001

Thanks for your replies so far!! With regards to our RTB application:- It was a joint application as I have lived here since we moved in 36 years ago, but it was my mum who qualified for the full discount. And, yes, once the purchase is completed we would like to have her name removed from the deeds.

I didn't think of remortgaging being a problem as we wouldn't be selling the house on as such. Obviously this is something I need to investigate further, unless somebody on here knows whether this is the case?

kingstreet

It's not the remortgage per se which would be the issue.

It's removing your mother from the ownership of the property by transfer of equity and if this constitutes a trigger for the repayment of the discount.

You need professional advice on this.

mimik001

Aah ok. So it looks like we'll have to wait a few years and then sort it out.

mimik001

Just to add - I just found this on the RTB website:-

You may not have to pay back the discount if you transfer ownership of your home to a member of your family. You’ll need to agree this first with your landlord and then get a solicitor to do this for you.

I'll check with our solicitor about this but looks like we may be ok.

Back to the original question then - how long would I have to wait before remortgaging?

JimmyTheWig

mimik001 wrote: »

Back to the original question then - how long would I have to wait before remortgaging?

Firstly, you're not remortgaging. You don't have a mortgage to pay off, so it's not a remortgage.

I would imagine that you'd be able to take out a mortgage at the same time as you do the Transfer of Equity. When, and if, you can do this (and if you have to pay back the discount) is a seperate question from the mortgage.
I don't see why you can't get a mortgage straight away.

Things to note in terms of the mortgage...
* Are there repayment penalties on the loan that you have taken out?
* I believe that the mortgage company will have to agree to giving you this money without them being certain that you will repay the personal loan with it, and so you may fail in terms of affordability.
* If you were able to get the required funds via a personal loan, does this mean that you only need a very small mortgage?

Things to note in terms of the Transfer of Equity...
* Your mum would be crazy to agree to this plan.

mimik001

It would be for £25,000.