My in-laws own a two bed house with a garage. When myself and my wife were in a bit of difficulty a couple of years ago they converted the garage in to a one bed flat and moved in to that and we moved in to the remaining two bed house. Both separate properties are still registered in the their name and we just pay a monthly amount towards their mortgage payments.
The in-laws curerently have two mortgages covering the properties, one for £180,000 and the other for £29,000. The value of the property (both as a single plot) is around £375,000. They are self-employed and my wife and I both work full time as employees. The second mortgage was only taken out for a 5yr period, which means payments of £770pm on that loan alone.
They/we are looking at remortgaging in some way shape or form to reduce payments but are unsure of the best way around it. We would stand a better chance if all of us put our salaries up for quotes but not sure how we stand with two of us being employees and on salaries and the in-laws on self cert. Even if the property price only came in at £350,000 we would still only be looking at a 60% mortgage and so I would have thought the mortgage company would feel quite secure with that??
Also I cannot quite get my head around the possibilities of transferring the houose in to my wife & I's name and then remortgaging somehow seperately....
Regards
Steve.