Possible solution? long post..

BIG_BROTHER_WORRIES

Howdy,
I've just been to talk to Abbey today about my worries.
(It's time to remortgage anyway) While I was going through
all the very painful scenarios,I will have to make a decision soon.

Anyway , I live in a nicepart of town ,owe approx £120000 max(90k mortgage rest unsecured)
on a property worth around £235-£250,000.(1 maisonnette in my close
on offer for£250,00) My salary is £22,00+o/t

My brother lives in a 1 bedroom with garden , 2 bus stops up the road,
mortgage of £70,000 value around £190,000.
He has £25,0000 endowment to claim when he retires at 65 His income approx£25-30,000

Question is, could we be able to put our funds together
and get either 4 bedroom house letting out 1 room ...
or try to get 2 bed/2 bathroom property?

Please bear in mind we want to remain in the Twickenham area.

I'm 46 , he's 56 . I was wondering how much we'd be allowed as mortgage, combining our joint properties etc.
Properties are expensive here.
.
Please advise
Thanks

_Andy_

Just to clarify - are you intending to sell both properties?

BIG_BROTHER_WORRIES

Hi Andy,
yes It's something we've both talked about.
The unfortunate thing is that ,my brother doesn't know how
much I owe. He seems to think that we could purchase something mortgage free. In this neck of the woods ,I can't see it.

What I was wondering is how much a mortgage company would lend us.
And of course,is it best to pursue this idea or forget about it .
If we could get a mortgage,I'm prepared to bite the bullet if it's not too much.

Thanks

herbiesjp

This does look possible.

With the deposits you will have, and the fact you will be clearing all other debt, means that you should have the highest income multiples available to you.

An average multiple would be 4 times your incomes

What house prices would you need to look at in your area? How much of the sale proceeds would you want to put down as a deposit.

Don't forget agents fees to take off from the sale proceeds along with stamp duty along with other fees

Radiantsoul

If you both sell you will probably have £200k left over. Even today you could probably borrow £200k on top(especially if you give the endowment policy as security.

To be somewhat rude his age would be more of an issue. Assuming you only want a 9 year mortgage you are going to need to pay around £2350 per month on £200k at around 5.5%. droppping the mortgage to £100k means just over a grand a month.

BIG_BROTHER_WORRIES

Thanks for your input guys.
I think in one way ,you are correct in taking my brothers age into
consideration. However,the onus seems to be on me as
I have 10 years on him so to speak.

The properties here are expensive, 3 bedrooms seem to go for
around £350-£380k and four bedrooms around£450k
The maisonnette 2 or 3 doors away from me in my close is
for sale at£250k.(2 berooms)

I don't mind paying say £3-500.00 per month over
say 10-15 years if that helps.
Not sure how much a mortgage that is..