Taking over family member's mortgage

[nomoneybags]

Hi,
Need your help on the following

A family member with a fixed five year mortgage on his house needs/wants me to take over the mortgage and is willing to sell the property to me. It would make financial sense for me and I can handle the mortgage. The house would be rented out by me ( have other rental property)

1. Is it possible to transfer the existing mortgage to me or does a new mortgage need to be taken out by me?
2. Are two sets of solicitors needed, thus increasing legal fees?
2. Does it matter whether my new mortgage is with the same bank as the seller? Are there particular banks I should approach? Luckily enough I currently have no mortgage
3. Fixed Term Fees- Is there any way the penalty for breaking the term can be negotiated/dropped? As it is to the benefit of the bank that I can take over the mortgage, could Force Majeure or similar be claimed?

Thanks

 

[dereko1969]

Hi,
Need your help on the following

A family member with a fixed five year mortgage on his house needs/wants me to take over the mortgage and is willing to sell the property to me. It would make financial sense for me and I can handle the mortgage. The house would be rented out by me ( have other rental property)

1. Is it possible to transfer the existing mortgage to me or does a new mortgage need to be taken out by me?
2. Are two sets of solicitors needed, thus increasing legal fees?
2. Does it matter whether my new mortgage is with the same bank as the seller? Are there particular banks I should approach? Luckily enough I currently have no mortgage
3. Fixed Term Fees- Is there any way the penalty for breaking the term can be negotiated/dropped? As it is to the benefit of the bank that I can take over the mortgage, could Force Majeure or similar be claimed?

Thanks

1. New Mortgage required
2. Yes
3. Doesn't matter, approach all banks get best deal for you.
4. Nothing to do with you, it's the vendor's issue.

It's very difficult to comment fully given how little detail you've provided.

I'd run a million miles from this based on what you've stated.

 

[Brendan Burgess]

Hi nmb

There are two separate, but interlinked questions which need to be dealt with here.

First of all, you should provide all the information from your brother's point of view.
If he is in arrears or in negative equity, you should provide all the information in the Case Study Format

In particular, why does he want to sell? Why not sell on the open market?
He is on a fixed rate at the moment. Is he, by any chance, entitled to a cheap tracker when that fixed rate expires?

You could provide more information about yourself as well. How much property do you have? How much loans do you have? Are you overexposed to property already?