Mortgage Buyout Options Accord

mjstokes85

Hi all, currently trying to buy out my partner and transferring the equity to me.

House estimated to be max 190k value although need a proper valuation, could be 185k.

16 year 10 month £62800 mortgage left at 4.58% at that rate for 4 more years.

Need £62600 to buy her out assuming 190k is value.

Have 10k and can be gifted 20k.

So would need to borrow and additional £32600.

Wages are around 25k a year, however Accord will only lend me another 24k over 32 years.

Spoke to a mortgage advisor and he says I need to extend the current 16 year term of the mortgage to something like 25 years and then borrow against that as it’ll open up more borrowing.

He proved this by showing me if I have a brand new mortgage with Accord they’d lend me £106k on my wage.

So if I ask them to extend the 16 years to 25 years, maybe longer, and then borrow more will this work?

Other option is take an early repayment hit of 3k and take a brand new mortgage out but seems daft.

Hope that makes sense.
Thanks!

penners324

Most options would involve paying off the old mortgage which will incur the ERC hit plus the need to pay SDLT. In essence you're buying the property from your partner.

Neither sounds sensible. 

mjstokes85

Spoke to Accord and they can extend the mortgage term and extra borrowing to 40 years with no ERC so I'd have enough, can I ask why I would pay stamp duty on a property under the threshold?