2 Properties, Soon to be Divorced, Mortgages

rosiesposies

Hello all, long LONG time lurker, most of the time I find the answers to my queries in established threads but looking for awhile and just want some advice.

Currently seperated and drawing up consent order with ex.

We own 2 properties, the former marital home which she currently lives in. Value of 208K, mortgage left of 165K, currently its on Interest only payments are £175 a month. Both our names on mortgage and deeds. She
She converted the ground floor into a flat and now lets that out to accrue income and to pay the mortgage, this and benefits being her only source of income.

Our former property is currently on a btl mortgage, £220 a month. Value of 130K mortgage left 112K. Rental income of £500 a month but its managed so a chunk of that is paid to letting agents. Again, both names on mortgage and both names on deeds.

The plan is I move into the smaller property, wife retains the larger. When she is able to do so (with new partner) she will remortgage as will I.
My question is as its a btl, will I have to remortgage to residential from the moment I move in?
My income is only 25K, not sure I would be approved for what would effectively be 2 res mortgages, in the interm until she can obtain a mortgage. I do currently live with my partner in rented accomodation but she is a student so her income can not be taken into account..well, there isnt one to speak of bar 3K grants a term.

JA1000

As long as the mortgage is paid it wont matter if it is BTL, they are over charging you for the benefit of this so they wont moan.

getmore4less

JA1000 wrote: »

As long as the mortgage is paid it wont matter if it is BTL, they are over charging you for the benefit of this so they wont moan.

Many(all?) lenders do not allow you to live in the property with a BTL mortgage.

JA1000

They would rather you left it empty???

Thrugelmir

JA1000 wrote: »

They would rather you left it empty???

Residential mortgages have different lending criteria.

Why borrow on BTL terms though. Far more expensive.

getmore4less

JA1000 wrote: »

They would rather you left it empty???

Irrelivent,

You would need permision from the lender just the same as if you want to let on a residential mortgage.

getmore4less

Thrugelmir wrote: »

Residential mortgages have different lending criteria.

Why borrow on BTL terms though. Far more expensive.

Did you read the post?

They are allready mortgaged and the setup might make a residential remortgage a problem for the BTL that the OP wants to move into.

rosiesposies

thanks for replies so far. Obviously my main concern is that on paper I am not financialy well enough off to be approved for 2 residential mortgages, as my name would have to remain on the property my ex lives in until she is in a position to remortgage. Which in theory is more than possible, I pay rent elsewhere on top of the two mortgages already in my name! But thats the way of the mortgage world I suppose.
My mother raised the point last night that my partner would be living with me, therefore she could be viewed as the main tenant, but I want to move away from the buy to let.
I guess I could in theory remortgage the property my ex lives in to BTL, which would remove her name from the mortgage but I assume her name would then need to come off the deed in order for the mortgage company to agree to allow her to reside there, which she will not agree to do as part of the consent order.. basically we are both protecting ourselves with names remaining on both deeds until mortgage ties can be severed.