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Mortgage on Home we bought outright

11 months ago my partner and I bought a house in a very run down condition. Due to it's state we didn't feel we would be able to get a mortgage on it so my partners mother kindly took a year long interest only loan out which allowed us to buy the house outright. (It is in our name not hers and we have a loan agreement with her.) We have carried out considerable renovations (these are ongoing) and the property should be worth considerably more than we paid for it. We now need to get a mortgage for the loan amount in order that my partners mother can repay the loan. However, today when I phoned HSBC to arrange an appointment with a mortgage adviser I was told that they would not lend more than £30,000 against a property for the purposes of paying a debt! Is this correct? And will all banks have this policy. I don't really understand how this is relevant. Does anyone have any information on this or tips on how to proceed. Many Thanks

Comments

  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Speak to a broker. Lenders do have tight rules in such circumstances.
  • ACG
    ACG Posts: 24,884 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    edited 21 July 2016 at 9:44PM
    There are lenders that will do it, subject to everything else.
    HSBC whilst good rates have strict criteria. There will be high street lenders if this is the only issue.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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