Mortgage Query.

Author
Discussion

Wolfie24

Original Poster:

4 posts

113 months

Monday 20th October 2014
quotequote all
Hi Guys

Long time lurker, first time poster.

Need some advice really, might be really simple. Currently live with my partner in my house in which the mortgage is in my sole name. I have around just over 25% equity in the property.

We intend to buy a larger house together in a nicer area. Her half will be paid for from her savings in full, my half from the eventual sale of my current house plus a mortgage, probable LTV around £40%.

Problem arises from the fact we may need to act quickly on this new house, in fact quicker than I can probably sell my current home. Can I have two mortgages etc or have I missed a more obvious solution?

Using her funds for anything other than on the new property are a no-no so exclude that and we are aware of deeds of trust etc on the unequal share contributed. Purely in financial circumstances.

Thanks in advance. John.

Sarnie

8,025 posts

208 months

Monday 20th October 2014
quotequote all
If your earnings are sufficient to cover the monthly payments, you can have as many mortgages as you like, within reason.

I assume that you are aware that your partner will also have to be on the mortgage, lenders won't accept somebody contributing to the deposit, who is going to be living at the property but not being on the mortgage.

Wolfie24

Original Poster:

4 posts

113 months

Monday 20th October 2014
quotequote all
Hi Sarnie

Yes we will both be living in the property and on the mortgage as joint owners etc with a deed of trust in place specifying the deposit ratio's in case the worst happens etc.

Will main high street lenders allow two mortgages...I'm currently with the Britannia?

Thanks. John.

Sarnie

8,025 posts

208 months

Monday 20th October 2014
quotequote all
Wolfie24 said:
Hi Sarnie

Yes we will both be living in the property and on the mortgage as joint owners etc with a deed of trust in place specifying the deposit ratio's in case the worst happens etc.

Will main high street lenders allow two mortgages...I'm currently with the Britannia?

Thanks. John.
Two mortgages?

Wolfie24

Original Poster:

4 posts

113 months

Monday 20th October 2014
quotequote all
Yes, myself being on the new mortgage whilst still being on the present one until I sell.

High street lenders or specialised?

John

Sarnie

8,025 posts

208 months

Tuesday 21st October 2014
quotequote all
Wolfie24 said:
Yes, myself being on the new mortgage whilst still being on the present one until I sell.

High street lenders or specialised?

John
In theory, as long as the figures stack up then there's no problem.

The bigger problem though is how lenders will assess the retained mortgage, post MMR.

Some will simply take the monthly payment as a commitment in the same way as a loan or HP payment. Others will take the balance, apply an annual stress rate to give a worst case scenario picture should rates rise. Others will apply there own calculations of the property running costs that you will incur like maintainence, Council tax, utility bills, repairs along with the mortgage payment.

How much any of the above impacts you is purely down to the figures. If you earn £100k and the total of both balances is going to be small (Eg sub £200k) then it's probably not going to be an issue. If you earn £40k and the new mortgage will be £200k and the retained one is £180k, for example, then you are going to struggle to get circa £380k of lending by an underwriter.....so, it's all figures dependent.

Wolfie24

Original Poster:

4 posts

113 months

Tuesday 21st October 2014
quotequote all
Thanks Sarnie

As a rough guide, current mortgage is approx £95k on property value of £130 and new mortgage will £130k on property value of £265k. Both salaries circa £40k. No other loans or credit cards etc.

Possible? or easier just to sell before looking and forget this property we have our eye on?

Many Thanks. John

Sarnie

8,025 posts

208 months

Tuesday 21st October 2014
quotequote all
Wolfie24 said:
Thanks Sarnie

As a rough guide, current mortgage is approx £95k on property value of £130 and new mortgage will £130k on property value of £265k. Both salaries circa £40k. No other loans or credit cards etc.

Possible? or easier just to sell before looking and forget this property we have our eye on?

Many Thanks. John
Sounds feasible to me John.

Drop me a line you wanted a chat! smile

Esseesse

8,969 posts

207 months

Wednesday 22nd October 2014
quotequote all
Wolfie24 said:
Thanks Sarnie

As a rough guide, current mortgage is approx £95k on property value of £130 and new mortgage will £130k on property value of £265k. Both salaries circa £40k. No other loans or credit cards etc.

Possible? or easier just to sell before looking and forget this property we have our eye on?

Many Thanks. John
This is not a big mortgage for that income at all.

anonymous-user

53 months

Wednesday 22nd October 2014
quotequote all
I have two mortgages on my income, bought one and moved out to rent it out and purchased another without selling.

One with Santander and one with Natwest.

One circa 100k wth 20% deposit one circa 140k with 15% deposit, both mortgages and houses in my sole name and when i took them out i was only on £32k ish.

Edited by Trexthedinosaur on Wednesday 22 October 14:21

WhisperingWasp

1,450 posts

136 months

Friday 24th October 2014
quotequote all
Wolfie24 said:
Yes, myself being on the new mortgage whilst still being on the present one until I sell.

High street lenders or specialised?

John
Possibly stating the obvious but remember that your half of the deposit won't be realised unless/until you sell your house.

Can you buy the new place with just your partner's deposit contribution (and the higher mortgage rate that will likely bring with the higher LTV)?