Remortgaging council property

Hope21

Not sure if anyone can help. We bought a council property but need to remortgage. We are 4.5 years into our current mortgage and as I understand it We would have to pay the discount back if we sold it but we are not selling it. Just freeing up some money.

muhandis

I would recommend talking to a broker.

If you were able to get a mortgage on the property 5 years ago, assuming no major changes (cladding issues, major s20 works etc, changes in circumstances), you shouldn't have too many issues remortgaging.

Have you looked at the available product transfers from your existing lender? No paperwork, no affordability checks, etc. Might be the easier way to go if rates are competitive.

Hope21 wrote: »

Not sure if anyone can help. We bought a council property but need to remortgage. We are 4.5 years into our current mortgage and as I understand it We would have to pay the discount back if we sold it but we are not selling it. Just freeing up some money.

strawb_shortcake

remortgaging is fine, but if you want additional funding that may cause an issue as the council will have a charge on the property until the 5 year point. When we remortgaged there were additional fees as we needed to get confirmation that the council/HA was not going to call in the charge. You may be better waiting 6 months depending on your rates

heston2014

Hope21 wrote: »

Not sure if anyone can help. We bought a council property but need to remortgage. We are 4.5 years into our current mortgage and as I understand it We would have to pay the discount back if we sold it but we are not selling it. Just freeing up some money.

We are in the process of remortgaging as our fixed term expires next month and using a broker for this. The discount claw back period also ends next month but this is irrelevant anyway since we are not selling the property. We are looking to borrow additional funds as part of the remortgage on a 3 year fixed term with the Halifax. Our broker said it's a straight forward process and I also enquired directly with Halifax. They will credit score as per usual and since we bank with them, they won't necessarily require pay slips or statements if salaries are paid directly to the same account. If you're not looking to borrow any additional funds and just want to switch to a lower rate, you can do this directly with the lender or the broker can also do all the leg work for you. :-)