House Swapping

GemQuin

Hello,

Bit confused and wonder if anyone can help.

My Mum owns her 3 bedroom house outright and my partner and myself own a small 1 bedroom house with a mortgage. I've just found out i'm pregnant with my second child and we were looking to move out of the area to get somewhere bigger. However, my mum wants us to stay and is willing to 'swap houses' with us, as she says she doesn't need somewhere as big. This would be a perfect solution for us.

However, how do I even go about getting this process started? Call my mortgage company and ask to port the mortgage, even though we're not actually selling? Will they allow this? And what are the tax implications?

I guess i'll have to go to a professional for advice but just wanted some ideas.

Many thanks in advance.
G.

eddddy

GemQuin wrote: »

However, how do I even go about getting this process started? Call my mortgage company and ask to port the mortgage, even though we're not actually selling? Will they allow this? And what are the tax implications?

You will need to apply for a mortgage on the new house. (They will do their normal affordability checks, value the new house etc.)

Even if the amount you want to borrow is the same, it's possible that the application will be refused, if your circumstances have changed.

If your lender is saying your mortgage is 'portable' - it just means you can get the same 'product features' with the new mortgage. (i.e. same interest rate etc)


With property exchanges, you are both liable for stamp duty according to the market value of the houses.