Re-mortgage on separation

hugo15

My wife and I are about to separate. Plan is that I will buy her out of the family home.

We currently have an offset mortgage that has 11 months left to run. It is fully offset. Would it be easier to settle the current mortgage now and then look to take out a mortgage in my own name giving me access to the whole market? From what I have read it looks like the best course of action would be to settle the mortgage transfer the deeds then for me to re-mortage to release my wife's share of the equity.

K_S

@hugo15 Unless I'm missing something obvious, the steps outlined seem a bit unnecessary. Most lenders will have a transfer of equity process whereby you can achieve all this in one single process. At the end of it (assuming you meet affordability), with most lenders you end up as the sole borrower on the offset mortgage.

If there is no penalty on the offset mortgage, then it may make sense to remortgage with a transfer of equity, again a fairly common process.

The above is based on the limited info in your post. Of course there might be more in the background which influences your choice of what route to take.

hugo15

There is only £2k left on the current mortgage which is fully offset. The current offset mortgage has a floor in the interest rate of 3.5% - not been an issue as been fully offset for a good few years but I was thinking that as I will have a c. £85k mortgage then settling first and looking for a cheaper deal in the open market would be a better idea. House is valued at £250k. Mortgage is just over 1x salary and Experian credit score is 999 so I am not envisaging any affordability issues.