Hi,

I have inherited a studio flat however I can not have my name on the title deeds until the mortgage is transferred into my name. There is a small mortgage of 34k on the flat which is worth 120-125k. The issue is that I have only been earning income for a few months and therefore I don't even have 1 years of accounts which the bank is requesting. I have no problem paying the monthly repayments and I could even pay off the mortgage now if I wanted however I don't want to do this as I earn more interest on the 34k in my savings account than I pay on my mortgage interest rate.

Could someone tell me what are my options? My boyfriend suggested I get a joint account with him however does that mean he would get a share on the title deeds? I wouldn't want this as I would be paying the mortgage repayments. If you need any more information let me know.

Thanks

Nathalie

Hi --- You could use your savings to clear the mortgage enabling the property to transfer into your sole name, then consider taking a mortgage out on a later date when you have a more checkable working history, perhaps there will be better deals out there at this time.

Just One suggestion.?

this mortgage is held by a BANK ? if you can get more money by keeping the cash presumably this is fixed rate ???

have you been to see the bank manager ? what will he do if you don't pay ...foreclose ? presumably a solicitor is handling the transfer to you , have a word with him/her , maybe could resolve the matter of transferring the mortgage to you ...as the percentage of the value still outstanding is so small the bank can hardly lose!!!

yep it's with the Woolwich. It's a variable offset mortgage, and turns out to be quite cheap. My current interest rate on the mortgage is 5.75%, and I get about 6.5% on my savings. I want to keep this mortgage for obvious reasons!

I spoke to customer services and they said they can't transfer into my name unless I have at least a years of accounts to show them and I take it even then they could reject it. Yet they seem quite happy with me just carrying on with the monthly payments that I've been making the last few months. My solicitor unfortunately is nothing short of useless, I've had to point out a few legal things to her and I don't even have a law degree! She didn't have any useful suggestions. A couple of friends have suggested I speak to a financial advisor.

What do you think about the joint mortgage? Would my boyfriend get a share in the property if I did that?

Hi...it is usual in the event of inheritance that the lender will honour the mortgage whilst payments are being made. Because there is a good rate presently I would continue to pay the mortgage payments as you have been doing until your accounts are available. The property is still yours essentially through the inheritance the property and title deeds have been bequeathed to you under the will, if this was decided by probate the same will apply, the fact that it takes you a little longer to register yourself on the deeds is irrelevant. The joint mortgage is an option but not something that you have to do and I would prefer to self cert my income through another lender than compromise the ownership.

---

Regards

Ian

Hi, the inheritance is a little complicated in that my mother did not leave a valid will, however she did write down all her wishes. So the estate had to be divided according to intestacy and we are now going to use a deed of variation to transfer everything according to what she wanted. However my solicitor did advise me that the title deeds couldn't be transferred into my name until the mortgage was either paid off or transferred to me.

I think you're right, the best way is to continue with the current arrangement until I can meet the banks satisfaction with regards to getting the mortgage in my name. It seems the most hassle free way of going about it.

Thanks for the advice,

Nathalie

if woolwich will continue , just carry on ; joint mortgage ..don't even think about it , if you split or there is a death it would get horrendous

and change your solicitor if she is useless !!!!! they charge enough !

yeah true, sounded like it could be potentially messy. lol i know i should, its just were so close to the end and I can't be bothered with the hassle! Not a good excuse I know.