Remortgage advice required

[OldskoolM3]

Hello,

Need some advice - I purchased a property from auction and I needed to complete within a 4 weeks. The bank took ages to arrange the mortgage even though I already had been approved, so instead of risking losing my deposit I managed to borrow the rest of the money I needed from my family and friends (mainly the parents).

Anyway the mortgage wouldn't have coe through in time so it was better then losing £15k deposit. However I naively thought if you own the house outright you can remortgage against it and was going to do this and pay back the people I borrowed the money from. However I am finding that this is not the case and the banks want to know who your mortgage is with when you apply for a remortgage and then pay that bank directly.

I have been going round in circles with various banking call centres so would be grateful for some advice or how to explain to the bank what product I want to purchase from them. BTW its a LTV of 65% to 70%.

Thanks

[IainT]

You're after a mortgage then, not a remortgage.

[OldskoolM3]

IainT said:

You're after a mortgage then, not a remortgage.

Can i get a mortgage on a house I now own? and will they just deposit the money in to my account or does it have to be deposited with a solicitor?

[splodge s4]

It is a remortgage as you do own the property. The problem you have is not many lenders allow you to remorg within the first 6 months of owning the place, they are worried you are inflating the price to make a quick buck by turing it around quickly.

Northern Rock will allow 'day 1' remortgages though they dont advertise it & should allow you up to 70% LTV on unemcumbered properties. (unemcumbered means owned out right with no mortgage)

Give them ago....

Just reading it through again, although its technically a remortgage as you own the property some lenders make you choose a purchase type product as theres no mortgage.

Edited by splodge s4 on Tuesday 30th November 15:52

[splodge s4]

OldskoolM3 said:

[ Will they just deposit the money in to my account or does it have to be deposited with a solicitor?

Solicitor gets the dosh as he acts for the lender then solicitor send you the dosh...

[batmanreturns]

Drop me an email and i'll give you a call to talk you through the options.

[OldskoolM3]

Email sent.

With regards to the solicitor..... is this normal practice? i.e. I'm not asking the solicitor to do anything dodgy?

And will they let me just apply for a normal mortgage if I already own the house.

Cheers

[splodge s4]

OldskoolM3 said:

Email sent.

With regards to the solicitor..... is this normal practice? i.e. I'm not asking the solicitor to do anything dodgy?

And will they let me just apply for a normal mortgage if I already own the house.

Cheers

Totally normal, a solicitor still needs to be appointed as he has to place the charge on the property, prepare the title deeds etc & act for the lender.

As for a 'normal mortgage' yup, its a normal mortgage just some lenders let you have remortgage deals & some make to choose their purchase deals, this is purely because the property is unencumbered. Halifax for example make you choose from their purchase range & not remortgage range if theres no mortgage.

The prob you have though is you've not owned it long enough & why did this place sell at auction, is it even mortgageable? On top of a coal mine? There's often a reason why places go through auctions.

Northern Rock will give you a mortgage if you have owned it less that 6 months. I don't know many others that will.

[obob]

splodge s4 said:

OldskoolM3 said:

Email sent.

With regards to the solicitor..... is this normal practice? i.e. I'm not asking the solicitor to do anything dodgy?

And will they let me just apply for a normal mortgage if I already own the house.

Cheers

Totally normal, a solicitor still needs to be appointed as he has to place the charge on the property, prepare the title deeds etc & act for the lender.

As for a 'normal mortgage' yup, its a normal mortgage just some lenders let you have remortgage deals & some make to choose their purchase deals, this is purely because the property is unencumbered. Halifax for example make you choose from their purchase range & not remortgage range if theres no mortgage.

The prob you have though is you've not owned it long enough & why did this place sell at auction, is it even mortgageable? On top of a coal mine? There's often a reason why places go through auctions.

Northern Rock will give you a mortgage if you have owned it less that 6 months. I don't know many others that will.

The property went through auction as the owner passed away and his wife did not want the hassle of a normal sale. (property is very close to me and was previously let out). Its in very good condition - survey was done etc. no problems.

My solicitor has done all the paperwork to do with the transfer of deeds etc. So maybe I should ask him about having the money transferred to his account.

[splodge s4]

obob said:

My solicitor has done all the paperwork to do with the transfer of deeds etc. So maybe I should ask him about having the money transferred to his account.

Yup, check first though that Northern Rock will give you a mortgage, then make sure your solicitor is on the Northern Rock panel. He will have to act for them aswell as you in this transaction. Its not as simple as just having the money transferred, its a similar process to buying a property with a mortgage for the first time, the mortgage application has to be submitted, survey done to make sure the property is satisfactory for mortgage purposes, mortgage offer issued then the solicitor carries out searches, registers the charge etc then when all is well he will draw down the funds & completes the transaction...dosh then sent on to you.

Any lender will do this if you have owned the property more than 6 months, N.Rock are one that will do it now. Easy

[obob]

Cheers!!

Who is OldSkoolM3 and how the fk did I post as a different user?