95% LTV, but already named on another mortgage

[Chucklehead]

Looking to buy in London with my other half, but will only manage a 5% deposit.

I'm concerned as she is already named on her sister's mortgage in Scotland.

The only reason she's on the mortgage was to satisfy the bank because her sister was on a temporary contract.. two years down the line the situation hasn't changed, so it may be difficult to get her name off.

Will this be an issue? I'm holding off booking an appointment with a mortgage advisor just now.

[Sarnie]

Chucklehead said:

Looking to buy in London with my other half, but will only manage a 5% deposit.

I'm concerned as she is already named on her sister's mortgage in Scotland.

The only reason she's on the mortgage was to satisfy the bank because her sister was on a temporary contract.. two years down the line the situation hasn't changed, so it may be difficult to get her name off.

Will this be an issue? I'm holding off booking an appointment with a mortgage advisor just now.

It will be a problem if you are trying to buy a property using a HTB mortgage as the primary criteria is that you can't have an interest in another property....

Can your income alone cover the mortgage?

[Chucklehead]

we're looking in Central London, so no, unfortunately not.

[Sarnie]

Chucklehead said:

we're looking in Central London, so no, unfortunately not.

In that case your further problem may be that even on a non HTB product, the lender will take into account the FULL monthly payment of the mortgage she is named on as an ongoing liability, whether she pays it or not. Your joint income may be enough to absorb that but it, of course, depends on your income & outgoings as a whole...

[Chucklehead]

ok, thanks. We should be able to get her off the mortgage in Scotland, it just delays things and there will likely be some additional expense for us.