Taking over mortgage

[mainsfed]

Hi all, my husband and I are divorcing and we've agreed I will buy him out of the house. Our mortgage is up for renewal this spring and the advice from the bank is for me to get another fixed rate term, minimum 2 years.

Ideally I would like to get the house in my name, so I can decide whether to get another fixed rate term or sell.

Do you know if this is possible? Or whether I will need to enter another fixed rate term?

Thanks

Thanks dane8. The bank thinks I can afford the mortgage on my own but they are advising me to commit to another 2 year term. I don’t want want to be tied into this whilst I decide what to do with the house.

You don't have to take out another fixed term deal. You're fixed rate will usually just go onto their standard variable rate at the end of your deal. These are usually higher interest rates and can of course change (for better or worse) with little notice, which is why they'd be recommending a fixed rate. Your mortgage adviser will be able to give you an idea of the monthly payments at the current rate and if the they go up a bit too.

Affordability is usually calculated based on the interests rates going up considerably, so that shouldn't change whether the bank think you can afford the mortgage alone. If you can afford that uncertainty, the benefit is that there is no penalties to pay if you sell or change mortgage companies. Would you be likely to buy again if you do sell? And will you need a mortgage for that? Because you can just port the new deal with you if that's the case and still not have any penalties.