Transfering mortgage and homes with daughter

Discussion in 'Mortgages' started by Franky123, Apr 12, 2019.

  1. Franky123

    Franky123 New Member

    I own a second property, with mortgage, which my daughter lives in. My daughter owns a property with mortgage that she lets out. We want to swop our rented homes. I have checked that our mortgage is portable. Do we have to go through the buying and selling process or is there a simpler route of transferring the homes to each other and porting the mortgages? Any advice would be most helpful. Thank you.
     
  2. Longterminvestor

    Longterminvestor Active Member

    Surely it is just a case of transferring ownership (and the financial difference) assuming your mortgage companies are happy? I think you need to take professional advice as the transfers need to be at the market rate.
     
  3. Andrea Thomas-Jones

    Andrea Thomas-Jones New Member

    Hi

    It's not quite that simple. A mortgage offer takes into account the individual/s plus the property. A property type that is acceptable to one lender, may not be acceptable to another. Is it a buy-to-let mortgage that you have? If so, many BTL lenders are not happy with a property being let to a family member. Also, you say that your mortgage is portable, but are you in any promotional period of your mortgage (fixed term etc)? If so, there could be penalties involved if the amount that you wish to borrow has changed.
     
    Last edited: May 29, 2019
  4. Longterminvestor

    Longterminvestor Active Member

    I think your first port of call is to speak with the relevant mortgage companies for yourself and your daughter. Tell them exactly what you are looking to do and see if they are happy to agree. As long as you are still able to "afford" your new mortgage figures then I do not see any issues.
     
  5. Andrea Thomas-Jones

    Andrea Thomas-Jones New Member

    The issues are that the involved mortgage companies would want their own property valuations carried-out and to conduct credit searches/scoring on the individuals, thus essentially applying for new mortgages. Plus solicitors' fees would need to be paid for the transfers. You would be better-off finding out what is available on the rest of the market and taking advantage of potentially lower interest rates and the other incentives on offer, i.e, free valuations, cash-back for soliciors' costs.
     
  6. realdeals

    realdeals Active Member

    @Andrea Thomas-Jones

    You make some good points there - mortgage companies will try to maximsie their income with new paperwork, valuations, etc. There are some brilliant deals on the market today which might make more sense.
     
  7. Andrea Thomas-Jones

    Andrea Thomas-Jones New Member

    Thank you. People seem opposed to paying a mortgage adviser when the reality is, many would benefit and save money by doing so, even if they have to pay a broker fee. I also didn't realise that this site had a 'resident' adviser. So I will refrain from offering any more free advice.
     
  8. diyhelp

    diyhelp Active Member

    There is certainly a time and a place for mortgage advisors and paying a fee could actually save you a fortune further down the line!
     
  9. FWL

    FWL Member

    Yip, sounds like this is a perfect scenario to employ the services of a mortgage broker. There must surely be some scope for reducing traditional fees?
     
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