Re-mortgage, family home, don't live there...advice please?

northerner87

Hi everyone,
Many years ago (approx 2008) my parents had to declare themselves bankrupt due to recession - their business failed. I still lived at the family home and was able to secure a mortgage with Northern Rock and bought the house from the 'official receiver'.
Many years down the line now - and the mortgage sits with Landmark Mortgages. I no longer live at the family home however pay over half of the mortgage. My parents pay the bills and a portion of the mortgage. The mortgage is a 'normal' repayment, has had no missed payments, no arrears etc.
I know that I am overpaying sticking with Landmark Mortgages, but how simple would/should a re-mortgage be? I live with my partner at an alternative address although the mortgage on that is my partner's, so I still only have the one mortgage.
Thanks in advance.

Thrugelmir

Was the mortgage ever switched from Interest Only to Repayment basis? 

northerner87

Its always been repayment - from day 1.

K_S

northerner87 said:

Hi everyone,
Many years ago (approx 2008) my parents had to declare themselves bankrupt due to recession - their business failed. I still lived at the family home and was able to secure a mortgage with Northern Rock and bought the house from the 'official receiver'.
Many years down the line now - and the mortgage sits with Landmark Mortgages. I no longer live at the family home however pay over half of the mortgage. My parents pay the bills and a portion of the mortgage. The mortgage is a 'normal' repayment, has had no missed payments, no arrears etc.
I know that I am overpaying sticking with Landmark Mortgages, but how simple would/should a re-mortgage be? I live with my partner at an alternative address although the mortgage on that is my partner's, so I still only have the one mortgage.
Thanks in advance.

@northerner87 It depends on whether you will be able to remo it as a residential/second home, or will it have to be a BTL. What's the LTV, do you have any cash to add to the equity, etc. And that depends on what your exact circumstances and living situation is. I imagine you (and your parents) are paying a pretty penny in interest by staying with landmark. I would recommend talking to a broker to see what your options are and how much you may be able to potentially save.

northerner87

LTV would be under 80%. No cash/equity to add. We are paying more interest than we'd like...my living circumstances are stable and I have no need to change my arrangements re: that. Would it class a second home if this is the only house I have a mortgage/interest in? Or does that not matter and the fact I live elsewhere mean it is classed as a second home? 

K_S

northerner87 said:

LTV would be under 80%. No cash/equity to add. We are paying more interest than we'd like...my living circumstances are stable and I have no need to change my arrangements re: that. Would it class a second home if this is the only house I have a mortgage/interest in? Or does that not matter and the fact I live elsewhere mean it is classed as a second home? 

@northerner87 Apologies, I can't get any more specific than that as it could be construed as advice, which would be a compliance issue for me as it would be given on the basis of very limited information. I hope that makes sense.

Hopefully another broker less constrained by their compliance environment will give their thoughts on your specific query.

Good luck, hope you are able to escape Landmark, you should hopefully be able to with <80% LTV!

MWT

northerner87 said:

LTV would be under 80%. No cash/equity to add. We are paying more interest than we'd like...my living circumstances are stable and I have no need to change my arrangements re: that. Would it class a second home if this is the only house I have a mortgage/interest in? Or does that not matter and the fact I live elsewhere mean it is classed as a second home? 

You are going to need a broker, if you don't already have one then if I was you I'd give serious thought to reaching out to K_S privately.

The brokers who post on here can't solicit business from other posters and can't cross the line into advice, but posters are free to approach brokers if they like what they see and want to take things further...