Help! need two mortgages

Armaan

Guys I need some advice, I shall try and keep it simple. I currently own a property worth £250k jointly with my brother. We are mortgage free, I earn a salary of 35k my brother due to an illness is on incapacity benefit and has no other income. I have seen a property worth £220k which i want to buy on my own. I want to release 70k equity on my current property - perhaps on a let to buy mortgage and get a 120k mortgage on the new property. I have savings of 30k for the new property to make up the 220k. My brother will move out and stay with family. Is this possible?? I have been told there are a few issues, firstly my brother cannot buy me out due to being on benefits, secondly i will not be eligible for a £190k mortgage, thirdly banks will not allow people to have two residential mortgages, fourthly there may be difficulties getting the 70k released due to the fact on paper im already getting a 120k mortgage, banks are not so keen to lend in these circumstances and my brothers current status. Helppp!!

getmore4less

Summary.

Property £250k joint owned with brother(living there?, to move out to live with family)
brother can't buy out OP.

income £35k, brother on benifits

Trying to raise £70k on this possibly BTL/LTB

Purchase £220, £120k mortgage on this, £30k savings.

Other problems not though through

Solution.

seems simple

Sell £250 house why bother renting.

dimbo61

The problem with selling £250K house is that brother would then NOT be entitled to benefits as he would have £125K in savings

getmore4less

dimbo61 wrote: »

The problem with selling £250K house is that brother would then NOT be entitled to benefits as he would have £125K in savings

The plan is to rent the place out so the income from the rental will also impact benifits.

Armaan

The long term aim is to sell, however the property I want to buy, which is to be my family home (not brother's) will not remain on the market long as is being marketed at a good price. Its not a problem if the rental income affects my brother's benefits. We are hoping to hang on to current property until the market improves, then sell and go our seperate ways. The question is will the banks let me release 70k equity on my current property which is worth 250k (but jointly owned with my brother who is on benefits) so that i can use the equity to fund another property, which i will move into (new property to be solely on my name, funded with a 120k residential mortgage +30 k savings + and hopefully with the 70k release of equity from current property. Will the banks give me the 70k? considering im already taking out 120k!