Repaying Father's Gift

Posted on 13 April 2011 by Rajesh


I have a friend where the mortgae was provided by the father on a nil interest basis but they now want to remortgage the to pay the father as he needs the money. Is this possible and how is it assessed?

Rajesh,

This is certainly possible and subject to normal mortgage underwriting your friend should be able to secure a mortgage with one of the high street banks or building societies.

There are a small number of lenders who will consider a remortgage on an unencumbered property and this would allow your friends to obtain a free valuation and either free legal services or a contribution to their legal fees.  The lender will want to be sure that they can afford the mortgage payments, that the property is suitable for mortgage purposes and that your friend's credit records are unblemished.

I believe your friend would benefit from speaking to one of our independent mortgage advisers. Please ask them to call on 0344 346 3672 and tell the consultant the date and title of this question. They will be able to look at the situation and advise accordingly.

Peter

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