Can my girlfriend get a mortgage?

[Stomnnorm]

Hello all,

As per the title really - I'm looking around on behalf of my girlfriend.

She currently lives in a house jointly owned be her and her brother. A lodger lives in the house with her and the rent that comes from them, services a loan her mum gave towards the house.

She now wants to buy her brother out - which he is happy for, but the trouble now is if she can get a mortgage to do so.

The house has been valued between 185k and 190k. If they work off the 185k valuation, that means she'd have to get a mortgage for 92.5k. She also wants to off set some debt on to the mortgage (circa 15k) meaning a mortgage of 107.5k

I'm sure the LTV would be fine, but a mortgage of 4.3 times her annual salary (25k) would be needed. Can this still be found and if so at an attractive rate?

Thanks in advance.


Nick

[westberks]

Nick

shouldn't be a bother at all. that ltv attracts some of the best rates and the slightly more tolerant underwriting; plenty of lenders extending to 4.25 income. only issue on that front is if she has loads of other debts that will hinder the affordability calculator that runs alongside the standard multiples.

as long as the mother doesn't have any formal charge on the property and otherwise it is unencumbered then should be easily achieved.

feel free to pm if you have any questions

[dalenorth]

To put it simpley....... No problem!

[Sarnie]

Stomnnorm said:

Hello all,

As per the title really - I'm looking around on behalf of my girlfriend.

She currently lives in a house jointly owned be her and her brother. A lodger lives in the house with her and the rent that comes from them, services a loan her mum gave towards the house.

She now wants to buy her brother out - which he is happy for, but the trouble now is if she can get a mortgage to do so.

The house has been valued between 185k and 190k. If they work off the 185k valuation, that means she'd have to get a mortgage for 92.5k. She also wants to off set some debt on to the mortgage (circa 15k) meaning a mortgage of 107.5k

I'm sure the LTV would be fine, but a mortgage of 4.3 times her annual salary (25k) would be needed. Can this still be found and if so at an attractive rate?

Thanks in advance.


Nick

Nick,

The income stretch will rule out a few lenders but it's entirely possible dependant on other criteria being met such as remaining credit.

[Stomnnorm]

Thanks for all the replies.

The initial loan from her mum was £30k. Between the lodger and my girlfriend, £800 p/m goes against paying off the loan. I think there is around £14k remaining and its a debt split between my girlfriend and her brother.

The loan is not against the house.

If she was to buy her brother out now, she wants to put the 7k she owes her Mum and the other debts against the mortgage. This includes a credit card, bank loan and overdraft.

After this has been paid off, the only other debt she'd have alongside the mortgage is £80 p/m from a student loan.

She'd also have the benefit of the lodgers rent.

I know it's a good LTV, but any ideas of rates she may expect to see (after you've taken out some lenders who wouldn't want to go as far north as 4.25 times her salary)?

I know there might be a few hurdles to climb and parameters to be met, but would it be difficult to put a timescale on how long it might take from point of application to 'completion'?

Thanks


Nick

[Sarnie]

Stomnnorm said:

Thanks for all the replies.

The initial loan from her mum was £30k. Between the lodger and my girlfriend, £800 p/m goes against paying off the loan. I think there is around £14k remaining and its a debt split between my girlfriend and her brother.

The loan is not against the house.

If she was to buy her brother out now, she wants to put the 7k she owes her Mum and the other debts against the mortgage. This includes a credit card, bank loan and overdraft.

After this has been paid off, the only other debt she'd have alongside the mortgage is £80 p/m from a student loan.

She'd also have the benefit of the lodgers rent.

I know it's a good LTV, but any ideas of rates she may expect to see (after you've taken out some lenders who wouldn't want to go as far north as 4.25 times her salary)?

I know there might be a few hurdles to climb and parameters to be met, but would it be difficult to put a timescale on how long it might take from point of application to 'completion'?

Thanks


Nick

Nick,

You would probably be looking at rates at circa 2.3% or thereabouts. I completed at similar case like this for a client recently in approx 3-4 weeks from point of application to completion and cash in hand.

Liam