Mortgage question...

[jimothy]

One for any mortgage people around here...

I've got a flat with a fixed rate mortgage till May.
I'd like to buy a house, and the mortgage I want is attainable, but only if I sell the flat. This is the only mortgage I can get that provides what I want.
I don't want to sell my flat, I want to keep it and let it out.

I know it's possible to put the future MrsJimothy on the current mortgage. She's not earning enough to take the mortgage on her own.

Could I add her to the mortgage, then take me off and stand guarantor for her? Then I'd be free of that mortgage so I can get the new one I want to buy a new house.
And would standing guarantor affect the amount I could borrow on a new mortgage?

Thanks in advance.

[dieseljohn]

I think my fixed rate mortgage says on it that I can convert it into a buy-to-let mortgage if I accept an increase in %. I don't know how having a buy-to-let mortgage effects your borrowing potential on a new residential mortgage though.

[jimothy]

dieseljohn said:

I think my fixed rate mortgage says on it that I can convert it into a buy-to-let mortgage if I accept an increase in %. I don't know how having a buy-to-let mortgage effects your borrowing potential on a new residential mortgage though.

The buy to let is no problem, they'll do a consent to let thingy as long as the rental covers the mortgage, and it doesn't affect future borrowing.

[allnighter]

jimothy said:

One for any mortgage people around here... I've got a flat with a fixed rate mortgage till May. I'd like to buy a house, and the mortgage I want is attainable, but only if I sell the flat. This is the only mortgage I can get that provides what I want. I don't want to sell my flat, I want to keep it and let it out. I know it's possible to put the future MrsJimothy on the current mortgage. She's not earning enough to take the mortgage on her own. Could I add her to the mortgage, then take me off and stand guarantor for her? Then I'd be free of that mortgage so I can get the new one I want to buy a new house. And would standing guarantor affect the amount I could borrow on a new mortgage? Thanks in advance.

If you add your MRS on the current mortgage , you could not remove your name off the mortgage at a later date.
She would have to be able to afford the mortgage on her own (earnings) and prove that to the bank before she "buys you out" so you can be free.
Additionally there is a 2 year period after that when if she defaulted you could still be chased for the money.

Your problem is prooving your MRS affordabilty as far as the her having a mortgage solo at a later date.Until you do that you cannot "remove " your name off the mortgage joint liabilty.

Have you considered self-certification mortgages where you don't have to proove your income and get a mortgage say 80/20?

Ring several independent financial advisors near you , I am sure they'll find a solution for you.

Hope this helps.
Barry

>> Edited by allnighter on Tuesday 8th November 14:13

[siwil1]

jimothy...

YHM