Capital raise mortgage

Cfowler

Hi,

I was hoping someone could provide any info in respect of the following query.

I currently own 50% of a property that I live in and the other 50% is owned by my parents. There is no mortgage on the property and I am looking to get a mortgage to buy the other 50% from my parents.
I believe this would be classed as a capital raise and would be slightly different from a typical mortgage.

I am curious as to whether I would still need a deposit or if I could just use the equity I have in the house instead?

Also, I am trying to get an idea of the figures involved in mortgage repayments. I know this varies a lot based on a number of factors but I'm wondering whether a standard mortgage calculator would give me a fair idea?

The house is valued at around £100,000 and I would be needing a mortgage for £50,000.

Many thanks

muhandis

Answers inline in red

Cfowler wrote: »

Hi,

I was hoping someone could provide any info in respect of the following query.

I currently own 50% of a property that I live in and the other 50% is owned by my parents. There is no mortgage on the property and I am looking to get a mortgage to buy the other 50% from my parents.
I believe this would be classed as a capital raise and would be slightly different from a typical mortgage.

I am curious as to whether I would still need a deposit or if I could just use the equity I have in the house instead? Yes, you could use the equity you have in the property in lieu of deposit. You might still need cash in hand for other expenses associated with the transfer of the remaining equity and the mortgage

Also, I am trying to get an idea of the figures involved in mortgage repayments. I know this varies a lot based on a number of factors but I'm wondering whether a standard mortgage calculator would give me a fair idea?

The house is valued at around £100,000 and I would be needing a mortgage for £50,000.If you want to know what your monthly payments will look like, any standard mortgage calculators should be able to give you an idea given assumptions regarding interest rate and term. If you want to get a basic idea of how much mainstream banks might be willing to lend you, you could use one of these comprehensive affordability calculators
https://www.santanderforintermediaries.co.uk/calculators-and-forms/affordability/
https://www.nationwide-intermediary.co.uk/calculators/affordability-calculator
Needless to say, there will be other criteria to meet.


Many thanks

Cfowler

Thanks very much for the response, will look at the link

Thrugelmir

Providing the mortgage is affordable shouldn't pose any issues.