Remortgage options after separation
Discussion
Heads a bit messy, even tho I work for a bank (in IT...) I'm wondering if i'm missing an option.
House worth approx 300k (valuation next week) 60k left on mortgage, me and missus splitting, we will get 50% of equity each....
I hate this house for all manner of reasons, but for the sake of the kids I would consider buying her out to give them a bit of stability for a couple of months and then sell this palce ratehr than selling it and us buying a new home each. Also we will in small semi rural area and finding 2 houses to move to is not easy.
Are my only options to transfer existing mortgage into my name alone (its a joint loan but only I pay it off) and then take out a further 120k or remortgage the whole 180k (yikes) at a single rate. Existing 60k is at 4.5% fixed from years ago, there are redemtion clauses but as so close to end of term they should be small. Dont want massive get out clauses for additional/new mortgage either as I will bin this house one way or another. To preempt, she couldnt take this place on herself
Looking for level headed options
Ta
Mike
House worth approx 300k (valuation next week) 60k left on mortgage, me and missus splitting, we will get 50% of equity each....
I hate this house for all manner of reasons, but for the sake of the kids I would consider buying her out to give them a bit of stability for a couple of months and then sell this palce ratehr than selling it and us buying a new home each. Also we will in small semi rural area and finding 2 houses to move to is not easy.
Are my only options to transfer existing mortgage into my name alone (its a joint loan but only I pay it off) and then take out a further 120k or remortgage the whole 180k (yikes) at a single rate. Existing 60k is at 4.5% fixed from years ago, there are redemtion clauses but as so close to end of term they should be small. Dont want massive get out clauses for additional/new mortgage either as I will bin this house one way or another. To preempt, she couldnt take this place on herself
Looking for level headed options
Ta
Mike
You could get a further advance from your current lender for the £120k, as long as you satisfy their criteria which will mainly be around your income, credit score and outgoings. You can transfer your partner off the mortgage as long as you satisfy their criteria above, for the full £180k. In effect you will need to apply for your own mortgage again. Doing this should avoid having to pay the ERC's.
However, dependant on the level of the ERC's and the rate offered for the additional £120k, you may want to look at a whole new lender.
It's hard to give a more detailed response without more detailed information.
However, dependant on the level of the ERC's and the rate offered for the additional £120k, you may want to look at a whole new lender.
It's hard to give a more detailed response without more detailed information.
Sarnie said:
You could get a further advance from your current lender for the £120k, as long as you satisfy their criteria which will mainly be around your income, credit score and outgoings. You can transfer your partner off the mortgage as long as you satisfy their criteria above, for the full £180k. In effect you will need to apply for your own mortgage again. Doing this should avoid having to pay the ERC's.
However, dependant on the level of the ERC's and the rate offered for the additional £120k, you may want to look at a whole new lender.
It's hard to give a more detailed response without more detailed information.
Yes, I will dig into the ERCs and find out for sure, thats the sort of thing my mind state forgets. My credit score should be as high, never had any defaults, ccjs or refusals, base salary is 57k so getting the 180k shouldnt be an issue. I have a promotion and a raise imminent though I'm not counting on either in this climate obviously. The transfer would be the easier by the sounds of it, slit is amicable(ish) at the moment so we could avoid legal fees too aside from the transfer of deeds costs which should be minimal. I'd then keep the house until the ERCs expire or unless as you imply, they are outweighed by the savings of transferring mortgage.However, dependant on the level of the ERC's and the rate offered for the additional £120k, you may want to look at a whole new lender.
It's hard to give a more detailed response without more detailed information.
GarryA said:
Go for a quick sale at £249,999?
Even though its 50k less its only 25k in reality.
Could do, I know it sounds arrogant in this climate to say so, but selling is easy round here, its buying that the issue due to lack of availability. The liklihood of finding one decent property is slim, two and at the same time nigh on impossible. I will see what the valuers say, i could be way off the mark but seeing what few others went on for and what they got (based on nethouseprices) I think we would be ok. Needs some cosmetic tidy up (I have a 5yo and a 7yo!!!) but decoratively and structurally its fineEven though its 50k less its only 25k in reality.
TedMaul said:
Could do, I know it sounds arrogant in this climate to say so, but selling is easy round here, its buying that the issue due to lack of availability. The liklihood of finding one decent property is slim, two and at the same time nigh on impossible. I will see what the valuers say, i could be way off the mark but seeing what few others went on for and what they got (based on nethouseprices) I think we would be ok. Needs some cosmetic tidy up (I have a 5yo and a 7yo!!!) but decoratively and structurally its fine
It will be much easier for you to stay with your current lender than to move to another. You will need to ask if they have a product that they can advance you the £120k on that has no ERC's as they are likely to want to tie you into a new deal. Meaning that you will either have to pay the ERC's on the Further Advance product when you come to sell or what until that product expires.They are unlikely to be keen to lend you the money on an ERC free deal if they think that it is going to be redeemed pretty soon.
If you have any issues with the lender and need to look at what else is available, just drop me a line.
Good Luck.
Ok, current deal is 6.19%.... yikws, i knew it was old.... good news is ERC is now down to £640, so it seems likely the best deal is to pay the ERC and take the whole 180k out on a tracker with no ERC and transfer to new property as and when, something flexible anyway. For some reason I had the erc down as a few grand, probably was last time I looked
Thanks for the thoughts and offer, appreciated
Mike
Thanks for the thoughts and offer, appreciated
Mike
So, I'm paying £695 at the mo, plus an estimated £575 for the additional which gives £1270 pcm, or if I pay the erc of £600 and take out a new loan for the full amount it is about £1035 pcm (ball park based on mortgage calculators) so its a no brainer really. Head feeling a bit straighter now..... a bit anyway
TedMaul said:
So, I'm paying £695 at the mo, plus an estimated £575 for the additional which gives £1270 pcm, or if I pay the erc of £600 and take out a new loan for the full amount it is about £1035 pcm (ball park based on mortgage calculators) so its a no brainer really. Head feeling a bit straighter now..... a bit anyway
Yep, no brainer. It'll save you £235 per month by moving it, just don't forget to take any set up costs of the new mortgage into account though. How long is left on your current 6.19% rate? If it's less than about 6 months you may be better sticking with it.....
Sarnie said:
Yep, no brainer. It'll save you £235 per month by moving it, just don't forget to take any set up costs of the new mortgage into account though.
How long is left on your current 6.19% rate? If it's less than about 6 months you may be better sticking with it.....
Setup costs for new mortgage should be zero (staff benefit), 13 months left on 6.19. House valuation tomorrow........How long is left on your current 6.19% rate? If it's less than about 6 months you may be better sticking with it.....
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