First time buyer mortgage v remortgage in 6 months

rastler

Thinking of buying a small flat for our daughter.
She has a 25% deposit. We can put in the rest to buy it outright. It saves all the hassle of hunting for a mortgage when we are up against cash buyers at the bottom end of the market.

After 6 months of moving in, the plan is that she will get a remortgage to pay off what she owes us.
I've been told that remortgages can be cheaper than first-time buyer mortgages (but from what I've seen on internet searches, I'm not sure this is true).

Grateful for any views on this please.

Boredatwrork

I just put a link up yeserday showing decent fee free deals, go take a look its entitled:

"Yes you can still get Fee free fixed remortgage at less than 2% for a 75% LTV"


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rastler

Thank you, I clearly wasn't putting in the right search terms on Google, I couldn't really get any decent deals on remortgages. I'll be looking at that in detail.

chelseablue

Do you own a place already? If so you'd need to factor in the higher stamp duty charge

Thrugelmir

chelseablue wrote: »

Do you own a place already? If so you'd need to factor in the higher stamp duty charge

Also they'll be stamp duty on transferring the property.

Thrugelmir

rastler wrote: »

She has a 25% deposit. We can put in the rest to buy it outright. It saves all the hassle of hunting for a mortgage when we are up against cash buyers at the bottom end of the market.

Shouldn't pose a problem if you are properly prepared.

Besides stamp duty fee considerations and additional legal costs, mortgage exit fees etc. There's the fact your daughter could lose any benefits from having a HTB ISA. All adds up.