JamieMacdonald

Before I speak to the solicitors....

Is it at all possible to transfer 2 mortgages, currently on different properties (i.e. mine, and my girlfriend's) onto a new, jointly owned property - thus avaoiding any redemption fees?

Our mortgages are both portable, but with different lenders. The total of both would be approx 75% LTV of the house we want.



Cheers

Reffro

In theory yes, practice no.

You'll never get the banks to agree to this. Neither would want to ceed first charge on the property I suspect, making this a non-starter. Then you'd both need to be jointly liable for both mortgages also.... It goes on and on.

Brendan Hughes

Go to whichever bank offers to cover the redemption charges of the other?

JamieMacdonald

Thanks for the responses.

I thought it would be a bit of a 'technicality minefield'

I'll check if either of them are willing to cover the redemption fees of the other - is this commonplace then?

Cheers,
Jamie

Brendan Hughes

Jamie, I've no idea in the UK, but I think banks are far more competitive than in Portugal. If you offer to give one the whole mortgage, you're giving them extra business - the trick for them is they'd have to pay (part of??) the redemption fees in order to get that.

I haven't a clue if it's possible, feasible, likely... but if you don't ask, you don't get!

fast bloke

I haven't come across one bank paying a redemption penalty to another. Also, it is likely you will have to pay both redemption penalties is you want the new house in joint names. You could try a transfer of equity on the mortgage with the higher penalty, but the person recieving the equity would have to be able to cover both mortgages on their own salary. Take both your mortgage offers to a decent mortgage advisor and they should be able to work out the most cost effective way to do it

Brendan Hughes

^^Oh bugger - someone who knows what he's talking about ^^

Andy 02STI

Surely one set of penalties is payable as the second mortgage isnt actually changing product it is simply adding a name. If no redemption penalties are payable when taking a name off then there should be none for adding. It is my understanding that the penalties are payable for redemption not changing the details or indeed increasing the lending.

fast bloke

Depends on the lender - In this case it seems both mortgages are being redeemed and a new one is being taken out on a new property. Many lenders allow you to 'port' your mortgage to a new property without paying a redemption penalty, but I know of a few who insist that you have to have the new mortgage in the same name(s) as the old mortgage to avoid paying the redemption penalty

JamieMacdonald

In this case one mortgage is being kept and ported, the other is being redeemed.

My girlfriend's redemption fees are double mine, and she has been told by her bank that she can change it to joint names, so I'm sure we will just keep hers and pay mine off to minimise costs.

I was just interested to see if there was a way to avoid paying ANY redemption fees.