Help! Ingnoramus needs mortgage advice please!

12barney34

Hi there,

I wonder if anyone could offer me some advice... My partner and I currently own 2 houses both mortgaged. His is worth approx £105k and he has a £40k mortgage, mine is approx £80k with a £50k mortgage. Neither are yet on the market though the intention is to sell both and buy together.

We have just unexpectedly seen our dream home which is £130k but needs £30k work. The owner is possibly willing to accept my partners house as part-ex up to £100k. This means that we will need £90-£100k to buy the new house and pay off his existing mortgage.

Now, I found out today that I am tied into a fixed rate HSBC mortgage at 5.49% for the next eight years and it will cost me £4,176.37 to get out of it!! I am pretty annoyed about this as I was advised my the guy on the phone when I updated it 2 years ago that I should tie in as long as possible to keep myself safe. Yes, I realise now that that was stupid!!!

My partner is just in a 2 year fixed deal that ends in Oct. However, he is not highly waged and is not on a permanent contract and so had difficulty getting this original mortgage, his contract is due to be (and will be) renewed in June. I am financially stronger however and have been in professional employment on a permament contract for 10 years at a University. Combined our wages are approx £40k. As we are getting a mortgage together will this help him get a better deal and is it possible to be the 'lead' name on the mortgage but have both names on the deeds?

I need to know whether it is likely that we could get a new mortgage for the £100k for the new house if I still have my existing mortage, as I may not be able to sell mine for a while. Whether it is better for me to try and sell my house asap and port my existing mortgage or whether we should try and get a new mortgage and just pay the money to get me out of the exisiting one...

Any advice gratefully recieved as at the moment we are totally confused and don't want to get our hopes up re the new house....

Thanks loads

Emma

unite79

Could you not port over your existing mortgage with HSBC to the new house, add your partner on, and then replace your HSBC mortgage with a buy to let!

Conrad

Lenders such as IF, C & G and others can consider a second mortgage but care is needed to ensure no last minute snags such as for example; Written consent from existing lender to let it out.

A well experienced broker will help - or try yoursefl directly of course.

Your partner may be added to the mortgage on the provison his credit history is clean.

There are pitfalls, but it can usualy be done.

Also see if HSBC could port your deal although I don't think this is an option if you keep the existing mortgage in place of course.

Take care to do it right first time.

Best of luck.

12barney34

OK, so I could possibly take my old mortgage to the new house and get a new mortgage to replace my existing one...?? I didn't know I could do that!!! Do you think someone would give me a new mortgage on my current house when I am actually going to sell it soon??

Not interested in Buy to Let though. Letting market is saturated here and I really just want to sell

Thanks for the advice it is much appreciated

12barney34

And yes, my partner's credit history is spotless