Can we have three mortgages?

coldstreamalways

My partner and I have just had an offer accepted on a house, we have a 15% deposit. I own a flat (where we currently live) and have got consent to lease from Halifax, my OH is separated (and divorcing) and he has a mortgage with Nationwide to provide a house for his wife and 16yo daughter. This is £750 a month.
We are hoping to get a joint mortgage for the house.


I have an immaculate credit history and can afford both mortgage payments on my salary (which is at least guaranteed until 2012) alone (even if we don't rent the flat out-we will but don't know how long it will take).

OH also has a clean credit history but his wife has asked that she can take a 6month mortgage "holiday" and he gives the £750 to her.


Is the fact that we both have another mortgage likely to affect our application? Or the fact that he is in a "holiday" period? We are both "employees" so don't need to self certify.

Your thoughts please?

disney_cjd

Hi

My understanding is that if you are NOT renting then they will asses what the max they will lend you is... say thats 500k then they will add in the cost of the exsisitng mortgages say 250 and therefore they will lend you 250k

Cheers

Rick62

No sorry Disney, what they do is take your income, deduct commitments and then apply multiples to what is left. This gives a better result.

In your case coldstream, if you current property is to be let out they may ignore this cost totally, for your partner (if joint) they would reduce his income to take account of what he gives his ex and then use this lower amount.

From what you have said you should have no problem

disney_cjd

Rick62 wrote: »

No sorry Disney, what they do is take your income, deduct commitments and then apply multiples to what is left. This gives a better result.

In your case coldstream, if you current property is to be let out they may ignore this cost totally, for your partner (if joint) they would reduce his income to take account of what he gives his ex and then use this lower amount.

From what you have said you should have no problem

I was going by what a mortgage advisor told us last week. Sorry

dimbo61

Please be carefull ex wife plus 16 year old daughter = CSA
Which would be 15% of his net take home pay
Does that equal £750 a month
Why does ex wife want a 6 months payment holiday !!!
Is she not getting £750 a month ( mortgage paid ) and WTC,CTC,CB , income from work !!! plus EMA for daughter if at college & part time work
Could your OH change the old mortgage to IO ?
His lender may not allow paymeny holiday so make sure with lender and carry on paying mortgage otherwise

barnaby-bear

dimbo61 wrote: »

Please be carefull ex wife plus 16 year old daughter = CSA
Which would be 15% of his net take home pay
Does that equal £750 a month
Why does ex wife want a 6 months payment holiday !!!
Is she not getting £750 a month ( mortgage paid ) and WTC,CTC,CB , income from work !!! plus EMA for daughter if at college & part time work
Could your OH change the old mortgage to IO ?
His lender may not allow paymeny holiday so make sure with lender and carry on paying mortgage otherwise

Sounds dodgy - he's liable for the debt at the moment which is currently increasing with this bizarre set up...

coldstreamalways

It's more than 15% of his net income but it is an arrangement they have arrived at together. I know it may be an issue with the CSA but we have just engaged a solicitor to help with the ins and outs of maintenance and to make sure she still has enough money. I am at a loss to explain why she wants a payment holiday, he gave her the house when he left, she couldn't get a mortgage as had no credit history/not enough salary, equitly etc etc so he agreed to keep paying it until their daughter is 18. She has now asked that she is given the money and has negotiated a mortgage holiday. Maybe she is saving for a deposit so she can get a place of her own? Fingers crossed.

Barnaby-bear, I can't imagine what sort of sheltered life you lead but as educated adults, we know he is still liable for the debt that is incorporated into this "bizarre set up". I earn enough money to cover my mortgage and our joint mortgage, he earns enough to pay this money to his (soon to be ex) wife. I can't understand how that is dodgy.

Conrad

Coldstream, in the real test will be lenders credit scoring. Your immaculate history will help but is only a part of the credit scroing equation.
We could debate all day, but in the end you will only know by applying.

I am finding more of these 'second/third' homes are being declined on score now.

Lenders that might help:

C & G
Halifax
Nationwide (very difficult lender on average)
Standard Life 9might be 80% max from memory)
Coventry BS
Abbey
A & L - but they will not factor in any rent unless there is a track history
N Rock

In terms of ease I find C & G and Halifax about the best. Nationwide and A & L fill me with dread.

Best of luck

coldstreamalways

It's ok. We got one, interest is a littel higher than I would have liked but C&G have given us a 5yr fixed rate. Halifax have given us a 3yr fixed (we had to change to get consent to lease) and job's a goodun.

Thanks for your help and reassurance.

dimbo61

Your OH is still tied up with his EX wife and that mortgage so be very carefull if its not paid for several months
Also be aware of CSA claim if things go bad !!