What mortgage should we go for? Joint? Remortgage? Heeelllppppp please

adorable_2

Hi

We are open and grateful to all advice.

My husband and I are interested in buying a cheap house (well cheaper as there is no such thing as a cheap house these days!) renovating it and then hopefully sell it on to make a profit.

Right so we know what we want to do but whats the best way at financing it all?

A bit of background:

We both currently have a joint mortgage on the house that we are living in with another 25 yrs left (£100,000 mortgage)

My husband owns another property outright in which his Dad lives (we currently think its valued at around £70,000 with no mortgage.

So our inital thoughts were that my huband would apply to remortgage his house (the one with no mortgage that his Dad lives in) for around £30,000
which could then be used as a downpayment/deposit on a mortgage that I would take out (single not joint) on the property we wish to buy and renovate.

So in simpler terms

Hubbie remortgage house valued at £70,000 for around £30,000

and then I would take out a mortgage (single) of £70,000 but putting £20,000 as deposit (from hubbies remortgage) so left with a £50,000 mortgage.

And we'd also have £10,000 left to do the renovations (from hubbies remortgaeg)

Does this make sense? Or is there an easier more cost effective way of doing it.

The reason I thought of applying for the mortgage just singular in my name was because otherwise my husband would have 3 mortgages in his name!!! This way we'd have 2 each?

What do you think? Is this even allowed?

Thanks

herbiesjp

Put simply - yes it can be done

However, as is normal, you would need to make sure you fit the criteria of the lenders - as you have seen, your scenario is quite involved, and therefore you do risk falling outside on some front.

Also looking at a rennovation project, could mean a property not being deemed as habitable ro coming in lower than the purchase price and the risks that entails

You may want to get some professional advice to take you through this purchase.

powerwin

adorable wrote: »

The reason I thought of applying for the mortgage just singular in my name was because otherwise my husband would have 3 mortgages in his name!!! This way we'd have 2 each?

That's not really a basis to make your decision on.

Have you and your husband got any income? The best deal is likely to be where you're asking for the least from the lender, so if you both have income then remortgaging in both your names for husband's house and new house might give you the best deal.

The other thing is making sure you time your plans well with the property market. You need to make sure you can sell any new house when you need to.

Just my thoughts, I'm no expert.

Rgds