Posted on 5 February 2010 by paul lashley
I am looking to buy my parents' house. How do I transfer my mortgage to this new address?
This request could be achieved very simply or there could be a large number of spanners that get thrown into the works along the way.
Your existing mortgage may be 'portable' which means it can be transferred to a new property subject to the lenders criteria and terms at that point in time. Depending on how old your existing mortgage is, you will need to examine either your original Key Features Illustration, mortgage offer or terms and conditions booklet to find out if this applies.
Assuming that it is portable, your lender will want to know if you are buying 'under value' and may base their calculations on the lower purchase price rather than the property's value. This could prevent your existing mortgage meeting their criteria and they may ask you to reduce the amount your wish to borrow. This may not be such a bad thing, but you may then become liable for a pro-rata early repayment charge if one applies.
I suggest that having checked your documentation first, you speak to your existing lender and then only if they are unable to help, speak to a good independent financial adviser. In either case, I also recommend that both your and your parents take independent legal advice about how best to proceed with the transfer of the property.
Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.
We recommend you seek professional advice with regard to any of these topics where appropriate.