Can You Remortgage a House if It Has Been Gifted to You?

Yes, it's possible to remortgage a property that you've received as a gift from your parents. 

Considerations When Remortgaging a Gifted Property 

There's no reason why you shouldn't be able to remortgage a gifted property. The only area that might be an issue is if you haven't owned the property for at least 6 months (see Day 1 Remortgages Explained). Otherwise, it would be a straightforward case of meeting the lender’s standard criteria and selecting the right product for your circumstances. 

Here are some key points to consider when remortgaging a gifted property: 

1. Ownership and consent - since the property was gifted to you, you are now the legal owner, and you have the authority to apply for a remortgage on the property
2. Equity release - if the property has increased in value since it was gifted to you, you may be able to remortgage to release equity. Equity release involves borrowing against the value of your property, either as a lump sum or through increased borrowing capacity, which you can use for various purposes such as funding home improvements, debt consolidation, or other financial needs 
3. Lender requirements - when applying for a remortgage, lenders will assess your financial circumstances, credit history and the value of the property. They may require a valuation of the property to determine its current market value and may have specific eligibility criteria for remortgage applicants 
4. Affordability - lenders will also assess your ability to afford the remortgage repayments based on your income, expenses and other financial obligations. It's essential to provide accurate information about your financial situation to the lender and ensure that you can comfortably afford the mortgage repayments 
5. Purpose of remortgage - before proceeding with a remortgage, it's important to consider your reasons for doing so and whether it aligns with your financial goals and circumstances. Whether you're looking to release equity, secure a lower interest rate, or access other mortgage products or features, it's crucial to weigh the potential benefits and risks of remortgaging 
6. Professional advice - it's recommended that you seek advice from a mortgage broker like John Charcol who can assess your individual situation and help you understand what remortgage rates and deals are options for you

If you would like to know more about remortgaging, read our guide or you can call us direct on 0330 433 2927 and we can assist you. 

People Also Asked - Remortgaging 

Are There Any Other Costs Involved? 

Yes, there are other fees to think about, including legals, homebuyer's reports or surveys, ERCs (early repayment charges), lender's booking and arrangement fees, broker fees and valuation fees. 

What's the Process for Remortgaging? 

A remortgage can take, on average, 4 - 6 weeks. Likewise, it can also take much less or potentially longer depending on the complexity of the application. 

Our remortgage process is usually as follows:  

1. You contact your current lender for a redemption statement. The statement shows how much is outstanding on your current mortgage on a specific day and any fees associated with repaying it 
2. Your personal mortgage adviser searches around the market and finds the best remortgage deal for you 
3. If you're happy to proceed, your adviser presents your current situation to the new lender for a Decision in Principle (DIP) 
4. Assuming the DIP is successful, your adviser goes through the proposed mortgage illustration and walks you through the full mortgage application, which they then submit on your behalf. You supply relevant documentation - e.g. passports, pay slips, tax calculations, bank statements, proof of address, etc. 
5. Your new lender requests a valuation report for your property. Your appointed solicitor then requests title deeds together with any lease that may be present and any extra questions that may need answering 
6. After your lender approves your mortgage application, you and the solicitor arrange a completion date. This is the date the solicitor draws the “new” money down from the new lender and uses it to clear the balance with your current lender.  Any money left over is paid to you 

Remortgaging a House that You Were Gifted - Summary 

Overall, remortgaging a property that you've received as a gift from your parents is possible, but it's essential to carefully consider your options, assess your mortgage affordability, and seek professional advice to ensure that you make informed decisions that align with your financial objectives.