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  • FIRST POST
    • burkicott
    • By burkicott 16th Jul 17, 4:55 PM
    • 1Posts
    • 0Thanks
    burkicott
    Applying for a second mortgage (awaiting removal from current one)
    • #1
    • 16th Jul 17, 4:55 PM
    Applying for a second mortgage (awaiting removal from current one) 16th Jul 17 at 4:55 PM
    I own a property which I no longer live in - this is currently being lived in by my ex-partner. I have moved to another city and am currently private renting.

    My name is still on the mortgage and deeds of my former property. There is a considerable amount of equity in this property and my ex partner has agreed to buy me out. He is able to remortgage in his name only and we will be instructing solicitors to sort out the legal side of things. Obviously this takes time, so we are just waiting for certain things to be confirmed.

    My question is - will having an existing mortgage increase my chances of being given another, or will it hinder them? I am considering buying a property nearby, as the market is good and renting is very expensive. I do not foresee any issues when I come to remove my name from the mortgage and deeds, so I am just looking at how mortgage providers will see me. My credit history is excellent, no missed payments, secure and well paid job, reasonable amount of outstanding debt that can be cleared easily, and no real issues that I can see in terms of eligibility.

    I understand affordability has to be taken into account, but my mortgage payments are quite low anyway, so would not cause any financial distress on top of an additional mortgage.

    If it is likely to go against me, I am happy to wait until everything has been sorted, as I don't want to cause any issues and would ideally like to get a good rate!

    Any advice would be appreciated
Page 1
    • AnotherJoe
    • By AnotherJoe 16th Jul 17, 8:01 PM
    • 7,049 Posts
    • 7,518 Thanks
    AnotherJoe
    • #2
    • 16th Jul 17, 8:01 PM
    • #2
    • 16th Jul 17, 8:01 PM
    I own a property which I no longer live in - this is currently being lived in by my ex-partner. I have moved to another city and am currently private renting.

    My name is still on the mortgage and deeds of my former property. There is a considerable amount of equity in this property and my ex partner has agreed to buy me out. He is able to remortgage in his name only and we will be instructing solicitors to sort out the legal side of things. Obviously this takes time, so we are just waiting for certain things to be confirmed.

    My question is - will having an existing mortgage increase my chances of being given another, or will it hinder them? I am considering buying a property nearby, as the market is good and renting is very expensive. I do not foresee any issues when I come to remove my name from the mortgage and deeds, so I am just looking at how mortgage providers will see me. My credit history is excellent, no missed payments, secure and well paid job, reasonable amount of outstanding debt that can be cleared easily, and no real issues that I can see in terms of eligibility.

    I understand affordability has to be taken into account, but my mortgage payments are quite low anyway, so would not cause any financial distress on top of an additional mortgage.

    If it is likely to go against me, I am happy to wait until everything has been sorted, as I don't want to cause any issues and would ideally like to get a good rate!

    Any advice would be appreciated
    Originally posted by burkicott
    It will likely reduce them to zero unless you have a very high income and wish to have a small mortgage.

    Note that if you were to buy a new property before this is cleared up there will also be a 3% SDLT surcharge (which would not be refundable)

    Wait.
    • Thrugelmir
    • By Thrugelmir 16th Jul 17, 9:17 PM
    • 54,765 Posts
    • 47,650 Thanks
    Thrugelmir
    • #3
    • 16th Jul 17, 9:17 PM
    • #3
    • 16th Jul 17, 9:17 PM
    Obviously this takes time, so we are just waiting for certain things to be confirmed.
    Originally posted by burkicott
    Shouldn't take that long if all parties concerned are pro-active.
    “ “Bull markets are born on pessimism, grow on skepticism, mature on optimism, and die on euphoria. The time of maximum pessimism is the best time to buy, and the time of maximum optimism is the best time to sell.” Sir John Marks Templeton
    • getmore4less
    • By getmore4less 17th Jul 17, 7:33 AM
    • 29,449 Posts
    • 17,601 Thanks
    getmore4less
    • #4
    • 17th Jul 17, 7:33 AM
    • #4
    • 17th Jul 17, 7:33 AM
    You are selling your current house and buying a new one.

    This would be no differnt to any typical sale and purchase if you time the purchase at the same time or after the sale.
    • AnotherJoe
    • By AnotherJoe 17th Jul 17, 10:12 AM
    • 7,049 Posts
    • 7,518 Thanks
    AnotherJoe
    • #5
    • 17th Jul 17, 10:12 AM
    • #5
    • 17th Jul 17, 10:12 AM
    You are selling your current house and buying a new one.

    This would be no different to any typical sale and purchase if you time the purchase at the same time or after the sale.
    Originally posted by getmore4less
    It is different because whilst OP is selling their current house they arent selling their current residence. There are therefore serious SDLT implications because of which I wouldn't risk a same day sale/purchase in case HMRC demanded their extra 3%. Just to be on the safe side. Because that would not be refundable.
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