Taking out a mortgage to pay back my parents.

Taucher

In May (this year) my parents bought a house for £245k (in cash) which they placed in me and my wife's name (ie my wife and I are now the legal owners). The idea is for us to mortgage the property (if possible) and repay my parents £195k (which is ideally how much the mortgage will be for), keeping £50k as a gift from them (lucky us).

My Dad has always been very relaxed about this process but now I am at the stage where I am going to start looking for a mortgage I am wondering if there is anything specifically I should be aware of.

Mainly I have a concern that we overpaid for the house. Also, how does the deposit (or absence of) work in this case?

Ideas and thoughts appreciated!

T

sleepyjones

As the house is already in your name, it'd be a remortgage?

I'm a little confused, why didn't you just get a mortgage in the first place and use the £50k gift as a deposit?

(I don't know much, at all about this kind of thing, just curious )

davidmcn

Lenders are generally reluctant to mortgage a property which has been owned for less than six months, so you may need to wait.

And any remortgage will be based on the open market value - so what do you think it's worth, if not £245k? Didn't you get it valued when you bought?

sleepyjones

Was just about to point to this thread https://forums.moneysavingexpert.com/discussion/5075449

but David' beat me to it

amnblog

A couple of mainstream mortgage lenders will re-mortgage you on day one.


Most lenders have a problem for the first six months, some for the first 12 months.


Engage a Broker.