Mortgage questions / thoughts
Discussion
Hello,
TL:DR how can I borrow £90k?
I am currently in a situation where I need to buy my ex partner out of her share of the house we own together. To achieve this I would need to borrow around £90k.
Doing this by adding to the mortgage would be affordable but the overall figure would end up being a high multiple of my salary. To mitigate this I also have:
i) A fairly decent stream of dividend income from shares I own in my employer
ii) Would take on a lodger / Air B and B one of the rooms
iii) Income from a business I part own
For repayment charge avoidance reasons I would like to stay with the Nat West bank, so I suppose my question is are they likely to be a 'computer says no' kind of organisation when i), ii) and iii) are concerned or can they take such circumstances into account. In particular I have solid proof of i) over the past few years.
Other thoughts are is it worth financing the £90k on an interest only basis as I can definitely show I have a plan in place to cover the amount at the end of the term.
Any other ideas of things I have missed? I will obviously be talking to the bank soon to see what they have to say but wanted to gather some thoughts from here first.
Ben
TL:DR how can I borrow £90k?
I am currently in a situation where I need to buy my ex partner out of her share of the house we own together. To achieve this I would need to borrow around £90k.
Doing this by adding to the mortgage would be affordable but the overall figure would end up being a high multiple of my salary. To mitigate this I also have:
i) A fairly decent stream of dividend income from shares I own in my employer
ii) Would take on a lodger / Air B and B one of the rooms
iii) Income from a business I part own
For repayment charge avoidance reasons I would like to stay with the Nat West bank, so I suppose my question is are they likely to be a 'computer says no' kind of organisation when i), ii) and iii) are concerned or can they take such circumstances into account. In particular I have solid proof of i) over the past few years.
Other thoughts are is it worth financing the £90k on an interest only basis as I can definitely show I have a plan in place to cover the amount at the end of the term.
Any other ideas of things I have missed? I will obviously be talking to the bank soon to see what they have to say but wanted to gather some thoughts from here first.
Ben
BigBen said:
Hello,
TL:DR how can I borrow £90k?
I am currently in a situation where I need to buy my ex partner out of her share of the house we own together. To achieve this I would need to borrow around £90k.
Doing this by adding to the mortgage would be affordable but the overall figure would end up being a high multiple of my salary. To mitigate this I also have:
i) A fairly decent stream of dividend income from shares I own in my employer
ii) Would take on a lodger / Air B and B one of the rooms
iii) Income from a business I part own
For repayment charge avoidance reasons I would like to stay with the Nat West bank, so I suppose my question is are they likely to be a 'computer says no' kind of organisation when i), ii) and iii) are concerned or can they take such circumstances into account. In particular I have solid proof of i) over the past few years.
Other thoughts are is it worth financing the £90k on an interest only basis as I can definitely show I have a plan in place to cover the amount at the end of the term.
Any other ideas of things I have missed? I will obviously be talking to the bank soon to see what they have to say but wanted to gather some thoughts from here first.
Ben
At this point, the standard response is to point you at SarnieTL:DR how can I borrow £90k?
I am currently in a situation where I need to buy my ex partner out of her share of the house we own together. To achieve this I would need to borrow around £90k.
Doing this by adding to the mortgage would be affordable but the overall figure would end up being a high multiple of my salary. To mitigate this I also have:
i) A fairly decent stream of dividend income from shares I own in my employer
ii) Would take on a lodger / Air B and B one of the rooms
iii) Income from a business I part own
For repayment charge avoidance reasons I would like to stay with the Nat West bank, so I suppose my question is are they likely to be a 'computer says no' kind of organisation when i), ii) and iii) are concerned or can they take such circumstances into account. In particular I have solid proof of i) over the past few years.
Other thoughts are is it worth financing the £90k on an interest only basis as I can definitely show I have a plan in place to cover the amount at the end of the term.
Any other ideas of things I have missed? I will obviously be talking to the bank soon to see what they have to say but wanted to gather some thoughts from here first.
Ben
BigBen said:
Hello,
TL:DR how can I borrow £90k?
I am currently in a situation where I need to buy my ex partner out of her share of the house we own together. To achieve this I would need to borrow around £90k.
Doing this by adding to the mortgage would be affordable but the overall figure would end up being a high multiple of my salary. To mitigate this I also have:
i) A fairly decent stream of dividend income from shares I own in my employer
ii) Would take on a lodger / Air B and B one of the rooms
iii) Income from a business I part own
For repayment charge avoidance reasons I would like to stay with the Nat West bank, so I suppose my question is are they likely to be a 'computer says no' kind of organisation when i), ii) and iii) are concerned or can they take such circumstances into account. In particular I have solid proof of i) over the past few years.
Other thoughts are is it worth financing the £90k on an interest only basis as I can definitely show I have a plan in place to cover the amount at the end of the term.
Any other ideas of things I have missed? I will obviously be talking to the bank soon to see what they have to say but wanted to gather some thoughts from here first.
Ben
i) It's unlikely they will use dividend income if they are some sort of share option in your employer....and you are a PAYE employee of the firm.TL:DR how can I borrow £90k?
I am currently in a situation where I need to buy my ex partner out of her share of the house we own together. To achieve this I would need to borrow around £90k.
Doing this by adding to the mortgage would be affordable but the overall figure would end up being a high multiple of my salary. To mitigate this I also have:
i) A fairly decent stream of dividend income from shares I own in my employer
ii) Would take on a lodger / Air B and B one of the rooms
iii) Income from a business I part own
For repayment charge avoidance reasons I would like to stay with the Nat West bank, so I suppose my question is are they likely to be a 'computer says no' kind of organisation when i), ii) and iii) are concerned or can they take such circumstances into account. In particular I have solid proof of i) over the past few years.
Other thoughts are is it worth financing the £90k on an interest only basis as I can definitely show I have a plan in place to cover the amount at the end of the term.
Any other ideas of things I have missed? I will obviously be talking to the bank soon to see what they have to say but wanted to gather some thoughts from here first.
Ben
ii) Lodger income will not be taken into account
iii) They could use this if you have two years of HMRC returns as evidence.
And from memory, they will only do Interest Only if your income is over £75k per year...............and only up to 75% LTV.........actually......I've found it all her for you;
http://www.intermediary.natwest.com/content/dam/na...
Edited by Sarnie on Tuesday 9th January 15:03
leef44 said:
Is your relationship with your ex amicable?
Would she be willing for you to pay in monthly instalments with market rate interest?
Could you pay her rent for her share?
Just thoughts...
Reasonably amicable but she will also want to buy a place so not a great suggestion.Would she be willing for you to pay in monthly instalments with market rate interest?
Could you pay her rent for her share?
Just thoughts...
Next question is assuming the Nat West can't help is it possible to have more than one mortgage on a property with different providers?
I know that this is a bit of a long shot, but do you know anyone in your family who has savings sitting in the bank that might be prepared to lend you the money? Obviously it requires a great deal of trust between the parties involved, but if someone's earning a stupidly low rate of interest on their savings and you can offer them 2-3+% pa for a few years, they might be tempted. I entered into an agreement like this with a family member, on the understanding that I'd pay them a rate fixed at between base rate and the standard mortgage rate. So they're quids in and so am I. We agreed that we'd review the situation in 2 years' time in case the money was required for some other purpose, but they were happy to help out. I suggested entering into a legally binding agreement to hold the money until such time as the house was sold and then repay it together with any interest outstanding but they were happy to proceed without.
I realise that for many people such an arrangement could be problematic, but if you're responsible and they trust you, it could be worth a try.
I realise that for many people such an arrangement could be problematic, but if you're responsible and they trust you, it could be worth a try.
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