Hi can anyone give me some advice in relation to the following which I will try to keep very simple. I need to help my daughter with her mortgage it was taken out for 110k against a property worth 125k. Fixed deal has ended so can I help her reduce the mortgage debt to around 40k without her being penalised by the lender who is Barclays. The 70k I am helping her with can be dealt with at a later time and is not a gift but loan to tide her over till rates hopefully return back to some normality. Barclays have stuck her on the SVR of 6.99. There are fixed deals available through Barclays around the 3 to 4% mark. Can she get one of those as well as reducing the amount of mortgage left to pay being only 40k. Any help appreciated.


  • jrawlejrawle Forumite
    505 Posts
    Part of the Furniture 100 Posts Name Dropper
    If the fixed deal has ended, you are free to take out a new mortagage with any lender. You can pay off as much capital as you like at this point. As the new mortgage will be a low LTV, it should be no issue to obtain a new mortgage. I suggest using a comparison site to see what rates are available for a £40k loan on a £125k property.
  • Sg28Sg28 Forumite
    89 Posts
    10 Posts First Anniversary Name Dropper
    "tide her over till rates hopefully return back to some normality"

    They are returning to normality. Which ~4-5% base rate.

    I wouldnt count on them going back down near 0
    Ex Sg27 (long forgotten log in details)

    Massive thank you to those on the long since defunct Matched Betting board. You started me on the path to making more money than I ever thought possible! 
  • KhaderbhaiKhaderbhai Forumite
    35 Posts
    Third Anniversary 10 Posts Name Dropper
    Yes but key is to make the overpayment before you ask to fix in a deal. The overpayment is what will unlock the more competitive rates.
  • dimbo61dimbo61 Forumite
    13.4K Posts
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    You need to consider this carefully.
    Do you have only the one daughter ?
    Can she get a £100,000 mortgage at current rates ?
    Have you looked at Offset mortgages with YBS ? 
    You daughter takes out an Offset mortgage and you put money into an Offset savings account saving her interest on her mortgage.
    We don't know why you want her to have a £40,000 mortgage ! ( drop in income )
  • TorkseyFernTorkseyFern Forumite
    4 Posts
    First Post
    Thanks for all your comments, We can get her on a new fixed deal which will soften the blow of the rate hikes. The offset mortgages mentioned are normally only available if you have a low LTV. The 70k payment opened up the fixed rates to her which is good enough for now. If anything else comes up in the mean time I will post further. I hope it doesn't so perhaps in 5yrs time I can update you as to how it all went. Cheers.
Sign In or Register to comment.
Latest MSE News and Guides

Did you know there's an MSE app?

It's free & available on iOS & Android


Regifting: good idea or not?

Add your two cents to the discussion

MSE Forum

Energy Price Guarantee calculator

How much you'll likely pay from April

MSE Tools