Remortgage Query
Discussion
Hi All,
Have a query on a remortgage that we are about to complete on.
We have 3 names on a property in which we are taking off 1 (Transfer of equity) and applied for a joint mortgage. (At the time a joint mortgage was the best offer we could get as advised by our mortgage broker). This was accepted and the mortgage offered to us.
The solicitors and the broker did not advise of the potential stamp duty and capital gains tax (Person being removed) that would be incurred.
We found out this on completion once we received the stamp duty amount and queried it to the solicitor.
We are now in a situation where we only have 2 options;
1. Apply for a new mortgage with 3 applicants with a rate that's 2/3% higher than what we have.
2. Go ahead with the rate offered for 2 applicants and take the hit of the stamp duty fees and capital gains tax for the person being removed.
Neither option is cheap at all.
If anyone has some advice or has gone through something similar to the above I would appreciate some insight on to whether there is any other solution.
Have a query on a remortgage that we are about to complete on.
We have 3 names on a property in which we are taking off 1 (Transfer of equity) and applied for a joint mortgage. (At the time a joint mortgage was the best offer we could get as advised by our mortgage broker). This was accepted and the mortgage offered to us.
The solicitors and the broker did not advise of the potential stamp duty and capital gains tax (Person being removed) that would be incurred.
We found out this on completion once we received the stamp duty amount and queried it to the solicitor.
We are now in a situation where we only have 2 options;
1. Apply for a new mortgage with 3 applicants with a rate that's 2/3% higher than what we have.
2. Go ahead with the rate offered for 2 applicants and take the hit of the stamp duty fees and capital gains tax for the person being removed.
Neither option is cheap at all.
If anyone has some advice or has gone through something similar to the above I would appreciate some insight on to whether there is any other solution.
pthoma888 said:
Hi All,
Have a query on a remortgage that we are about to complete on.
We have 3 names on a property in which we are taking off 1 (Transfer of equity) and applied for a joint mortgage. (At the time a joint mortgage was the best offer we could get as advised by our mortgage broker). This was accepted and the mortgage offered to us.
The solicitors and the broker did not advise of the potential stamp duty and capital gains tax (Person being removed) that would be incurred.
We found out this on completion once we received the stamp duty amount and queried it to the solicitor.
We are now in a situation where we only have 2 options;
1. Apply for a new mortgage with 3 applicants with a rate that's 2/3% higher than what we have.
2. Go ahead with the rate offered for 2 applicants and take the hit of the stamp duty fees and capital gains tax for the person being removed.
Neither option is cheap at all.
If anyone has some advice or has gone through something similar to the above I would appreciate some insight on to whether there is any other solution.
The mortgage broker is not qualified to provide advice on stamp duty......although they possibly could have told you to seek advice from a solicitor but it's not within their remit to do so.Have a query on a remortgage that we are about to complete on.
We have 3 names on a property in which we are taking off 1 (Transfer of equity) and applied for a joint mortgage. (At the time a joint mortgage was the best offer we could get as advised by our mortgage broker). This was accepted and the mortgage offered to us.
The solicitors and the broker did not advise of the potential stamp duty and capital gains tax (Person being removed) that would be incurred.
We found out this on completion once we received the stamp duty amount and queried it to the solicitor.
We are now in a situation where we only have 2 options;
1. Apply for a new mortgage with 3 applicants with a rate that's 2/3% higher than what we have.
2. Go ahead with the rate offered for 2 applicants and take the hit of the stamp duty fees and capital gains tax for the person being removed.
Neither option is cheap at all.
If anyone has some advice or has gone through something similar to the above I would appreciate some insight on to whether there is any other solution.
Have you worked out the total cost of the increased new rate for 3 of you Vs the stamp duty and CGT costs?
Yes agreed, I guess it would come with how experienced the mortgage broker is.
Worth mentioning that the remortgage is for a BTL.
1. New rate - 5.86% £1349 a month. £32,376 over two years
2. Offered rate - 2.6% 609.94 a month. 14,638 over two years (2,700 Stamp duty and Approx 18k CGT)
Both quite significant amounts.
Worth mentioning that the remortgage is for a BTL.
1. New rate - 5.86% £1349 a month. £32,376 over two years
2. Offered rate - 2.6% 609.94 a month. 14,638 over two years (2,700 Stamp duty and Approx 18k CGT)
Both quite significant amounts.
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