Mortgage advice please!
Discussion
Bit of advice needed. I'm looking at getting a mortgage in conjunction with my partner, as we've seen a house we really like and the vendor is happy with our offer. however I've got a house which is for sale but proving slow to sell. The mortgage is £317 per month and easily covered by income. We're looking at using savings for a 23% deposit on the new place and would need a mortgage for the rest, so I don't need to sell my existing place to fund the move, but I am still aiming to sell it. My partner is named on another mortgage from an old relationship so I'm concerned that both this and my existing mortgage would stop us getting another. Her ex partner pays the mortgage and has done for years. And in terms of affordability, the repayments on the new mortgage would be about a quarter of our combined income. My credit rating is 999 with experian. We've got a 'decision in principle' based on our income and outgoings and salaries, but not on the broker having done a credit check. We are told we should be able to borrow more than we need for the prospective purchase. My question is whether the existing mortgages we are named on will create a problem when it comes to the actual application and if so are certain lenders more tricky than others. I've spoken to L&C so far and they seemed helpful, but we're keen to ensure no slip ups as there are others after the house..
It's almost impossible to answer with knowing all of the figures.
Some lenders will be more amenable than others.
If they are not BTL's and no rent is being received then most lenders, at the very least, will take the FULL mortgage payments of both mortgages into account as ongoing commitments, irrespective of whether you or an ex is making the payments. If you're named on a mortgage you are both 100% liable for the full payment, so the lender will have to assess the case as if you have to pay all three mortgages each month.
As they are not BTL's they will be classed as second residential properties, some lenders will decline applications where there are second residential properties in the background. Some will restrict LTVs and some will aggregate the total indebtedness and apply a stress rate to them to assess your affordability.
As mentioned at the start, the impact of any of the above will be dictated by the numbers involved.......
Some lenders will be more amenable than others.
If they are not BTL's and no rent is being received then most lenders, at the very least, will take the FULL mortgage payments of both mortgages into account as ongoing commitments, irrespective of whether you or an ex is making the payments. If you're named on a mortgage you are both 100% liable for the full payment, so the lender will have to assess the case as if you have to pay all three mortgages each month.
As they are not BTL's they will be classed as second residential properties, some lenders will decline applications where there are second residential properties in the background. Some will restrict LTVs and some will aggregate the total indebtedness and apply a stress rate to them to assess your affordability.
As mentioned at the start, the impact of any of the above will be dictated by the numbers involved.......
Sarnie said:
It's almost impossible to answer with knowing all of the figures.
Some lenders will be more amenable than others.
If they are not BTL's and no rent is being received then most lenders, at the very least, will take the FULL mortgage payments of both mortgages into account as ongoing commitments, irrespective of whether you or an ex is making the payments. If you're named on a mortgage you are both 100% liable for the full payment, so the lender will have to assess the case as if you have to pay all three mortgages each month.
As they are not BTL's they will be classed as second residential properties, some lenders will decline applications where there are second residential properties in the background. Some will restrict LTVs and some will aggregate the total indebtedness and apply a stress rate to them to assess your affordability.
As mentioned at the start, the impact of any of the above will be dictated by the numbers involved.......
Thanks. Looks like I need a further conversation with a mortgage advisor to discuss figures... Some lenders will be more amenable than others.
If they are not BTL's and no rent is being received then most lenders, at the very least, will take the FULL mortgage payments of both mortgages into account as ongoing commitments, irrespective of whether you or an ex is making the payments. If you're named on a mortgage you are both 100% liable for the full payment, so the lender will have to assess the case as if you have to pay all three mortgages each month.
As they are not BTL's they will be classed as second residential properties, some lenders will decline applications where there are second residential properties in the background. Some will restrict LTVs and some will aggregate the total indebtedness and apply a stress rate to them to assess your affordability.
As mentioned at the start, the impact of any of the above will be dictated by the numbers involved.......
mikees said:
As an aside she should get her name off that other mortgage. Either sell or buy out. Not a great place to be where she is which I assume sarnie will confirm.
Can't see an upside and seen others burnt by this sort of casual agreement.
Agree, I see this a lot, the issue is usually that the person still in the property either can't satisfy lending criteria to take the mortgage over in their name only or they refuse to allow the other person off the mortgage out of spite, knowing it's going to cause them issues when trying to buy a property for themselves......Can't see an upside and seen others burnt by this sort of casual agreement.
tjk123 said:
My partners ex is fully amenable to removing her from the mortgage but wants to wait until the fixed deal ends in August otherwise remortgaging would incur big fees, so it'll be done at that point.
I will contact you Sarnie.
I will contact you Sarnie.
He doesn't need to remortgage to remove your partner............it has nothing to do with the rate, the lender would only ever be concerned about if he can afford the mortgage in his own right.
Anyway, August isn't too far away, but given the time a Transfer of Equity can take, he should be doing this right now...
Happy to have a chat if you drop me a mail/PM!
Sarnie said:
He doesn't need to remortgage to remove your partner............it has nothing to do with the rate, the lender would only ever be concerned about if he can afford the mortgage in his own right.
Anyway, August isn't too far away, but given the time a Transfer of Equity can take, he should be doing this right now...
Happy to have a chat if you drop me a mail/PM!
Interesting, I think they were under the impression he'd have to remortgage. I'll drop you a note in the morning, thanks.Anyway, August isn't too far away, but given the time a Transfer of Equity can take, he should be doing this right now...
Happy to have a chat if you drop me a mail/PM!
tjk123 said:
Interesting, I think they were under the impression he'd have to remortgage. I'll drop you a note in the morning, thanks.
A relationship split is a pretty huge life event, a lender would not refuse to allow someone to be removed from a mortgage, as long as the remaining person can afford the mortgage on their own.......anyway, August is almost here!Gassing Station | Finance | Top of Page | What's New | My Stuff