Is there a mortgage product to suit our complicated ambitions?

MustangSally

My boyfriend and I want to sell our individual homes and buy one together. I'm hoping for a bit of advice as we don't consider our situation to be mainstream. Here goes...

I have an interest-only tracker mortgage (tracks at .75% above BoE) with 19 years to run. No redemption penalties and is portable.

My boyfriend has a fixed repayment mortgage (5.5% expires Nov 2010) with 14 years to run. Early redemption penalty of around £2,000 (currently, but reduces over term), not sure if portable.

Clearly we're not a simple joint mortgage case as we both want to keep to as close as what we've currently got (other than the 5.5% rate!) and specifically my boyfriend will not extend the term beyond 14 years.

What sort of products should we be looking for?

Fairwinds

How much are you hoping to sell the individual properties for and how much are the mortgages.
Also how much are you looking to spend on the new property.
What is in place to repay your mortgage if its interest only

Not sure I call help, but bumps it up the list if nothing else

Robert_Sterling_3

MustangSally wrote: »

What sort of products should we be looking for?

What is it that you want to know?

silvercar

You can only have one mortgage on a property, so one has to go.

Option 1:

Port your mortgage across to keep the rate, add your boyfriend to the mortgage, suffer the redemption penalties to get rid of the 5.5%. As yours is interest only you need to overpay each month to aim to clear the mortgage in your boyfriends target of 14 years.

Option 2:

Dump your mortgage, add your name to the boyfriends, keep his mortgage at 5.5% and look for a new deal in November 2010.

option 3:

Dump both mortgages, pay any redemption penalites. Take out a new mortgage together. See a broker, preferably fee free, to get the mortgage deal best suitable to your circumstances.

MustangSally

GordonD wrote: »

How much are you hoping to sell the individual properties for and how much are the mortgages.
Also how much are you looking to spend on the new property.
What is in place to repay your mortgage if its interest only

Not sure I call help, but bumps it up the list if nothing else

Ideal, realistic selling price of £150k on each property, clearing £126k on my mortgage and £109k on my boyfriend's.

Buying at £275k. All costs will need to come out of sale proceeds but we will be looking at LTV of less than 90% so are confident of finding a good deal if we can't port one of the existing mortgages across.

MustangSally

Robert_Sterling wrote: »

What is it that you want to know?

Not sure, but Silvercar has answered one of my questions, in that we can't each buy half a house to each keep to our own deal!!

silvercar wrote: »

You can only have one mortgage on a property, so one has to go.

Option 1:

Port your mortgage across to keep the rate, add your boyfriend to the mortgage, suffer the redemption penalties to get rid of the 5.5%. As yours is interest only you need to overpay each month to aim to clear the mortgage in your boyfriends target of 14 years.

Option 2:

Dump your mortgage, add your name to the boyfriends, keep his mortgage at 5.5% and look for a new deal in November 2010.

option 3:

Dump both mortgages, pay any redemption penalites. Take out a new mortgage together. See a broker, preferably fee free, to get the mortgage deal best suitable to your circumstances.

I'll get my calculator out! And find a broker!

Thanks

Robert_Sterling_3

Thank you very much for your reply. Good luck.