Interest only Mortgage - Urgent help needed...

cahillg81

Why wouldn't anyone have taken action to have your estranged father removed from the mortgage 15 years ago?

This is a messy situation. I'd definitely be seeking legal guidance to explore options. But if Dad is on the mortgage and they are still legally married he has a claim on 50% of the value of the property - even if he hasn't made any payment towards it.

MoXoM

Thanks for the replies.

It seems the consensus here is avoid large loan and go for Mortgage instead.

Assuming my step-dads name is removed from mortgage then:

1. Would it beneficial for me to have my name added onto current mortgage with my mums name (if possible). If so, then when applying for £60,000 mortgage would I then select Remortgage instead of First Time Buyer (even though it would actually be my first mortgage)?

Also would it be better to have my mums name removed since she wouldn't be contributing towards Mortgage or does that not matter when applying for Mortgage?

OR

2. Would it be better for me NOT to add my name to current Mortgage. This would make sense since my mum would be selling property to me. I would then be classed as a First Time Buyer (which in fact I would be).

Which option is preferable (considering I'm currently living in property already and have been paying current mortgage on my mums behalf).

Finally, a friend of mine mentioned to me that instead of my mum "Selling" the property to me she could in fact "Gift" it to me.

Something about it not affecting her Inheritance Threshold or something...

Regards,

Mo.

tonyh66

your mum can't 'gift' you it because she doesn't own the house the bank owns it until the mortgage is paid off

MoXoM

That would make sense!

amnblog

Mum can gift you the element she owns with you taking a mortgage to replace hers.

leespot

The first thing you need to do is get the other person removed from the mortgage - but not many people would willingly walk away from that sort of possible amount of money. Solicitors is the first place I'd be looking. All the best.

MoXoM

Hi all.

Just an update I thought I'd share.

It turns out that my younger brother has been able to contact his dad (my step-dad).

After a stressful and (one can only assume upsetting) exchange between the two of them my step-dad has agreed to sign his half of the mortgage to my mum.

He has put it in writing and now I can contact Bank of Ireland tomorrow to inform them and of course send letter to them.

What a result!

Once his name has been taken off the current mortgage we can then move forward.

The next thing I need to consider is whether my mum should sell the property to me or gift it to me.

Here are some scenarios I have in mind:

1) Mum sell property to me for £60,000 (cost of outstanding balance). I would need to apply for a mortgage as a First Time Buyer. Mum would then use the money to pay off the outstanding mortgage.

2) Mum would gift the property to me. I assume this means current mortgage would be solely in my name. I would then need to apply for a remortgage for the value of £60,000. I would then use the money to pay off the outstanding mortgage.

Am I right in assuming the above? Which option would be preferable in your experience?

Mum would still be staying at property.

Some guidance would be appreciated.

Regards,

Mo.

AnotherJoe

Do you mean sign his half of the house over to mum ? He can't sign the mortgage over.
You need to get a solicitor involved to sort this properly.

leespot

What about your brother in all of this? Good result for you but what about anyone else?