Moving Mortgage to Parents Property

Deep1989

Hi all,

Looking for a bit of advice. I currently have a 5 year fixed mortgage with Santander, we've recently decided to move house and look for something much bigger. We've not quite found the right property yet, however, we do have a buyer for our current place.

Having spoken to Santander they said I have 90 days to find and complete on a new property otherwise they will not refund my £12k early termination charges.

I was thinking, is there anyway for me to move back in with my parents and port my mortgage over to their property? They're basically mortgage free (£15k left). my wife and I including my parents are happy to be co-owners of the property and the mortgage if thats what the bank require for assurance.

In short, I don't want to rush before finding my next property and paying ERCs for that privilege doesn't seem like good sense. I also don't want to go down the route of formally purchasing the property off my parents as the Stamp duty alone will be approx triple the ERC.

Wondering if anyone has done something similar or knows a way to temporarily avoid ERCs?:beer:

Thanks,

D

davidmcn

Deep1989 wrote: »

I also don't want to go down the route of formally purchasing the property off my parents as the Stamp duty alone will be approx triple the ERC.

To port your mortgage you'd need to be paying them at least whatever your mortgage balance is (otherwise where would the money be going?).

And many other potential complications with your plan.

Deep1989

I'm happy to pay them the mortgage balance in exchange for a share in their property, however, what I don't want to trigger is a full purchase of their property and have them living with me as per Santanders recommendation over the phone.

davidmcn

Deep1989 wrote: »

I'm happy to pay them the mortgage balance in exchange for a share in their property, however, what I don't want to trigger is a full purchase of their property and have them living with me as per Santanders recommendation over the phone.

Not sure what you're envisaging then - a mortgage needs to be granted by all the owners of a property. Generally banks want the borrowers and the owners to be one and the same - so either you and your OH buy the property, and your parents hope that you don't kick them out (and the bank might not like that scenario anyway), or all four of you become joint owners and joint borrowers (which the bank might not like because they don't like foursomes, or because of the age of your parents, or because it then falls outside their "porting" criteria).

In short - I doubt it can be done, but maybe somebody else has a cunning plan.

LandyAndy

How long is left on your fixed term?

Presumably you didn't take a five year fix and immediately decide to move?

I don't think you can (or should) do what you propose for any number of reasons.

So, find somewhere quickly or abandon this sale until the penalty is less.

tlc678910

I think you need to encourage your buyers to wait until you find a new place, even if you ended up paying their costs if they had to renew their mortgage application or offering a sweetener in some form (make sure you check what is ok with your solicitor) it would be a lot less than 12 grand.