Can I use house equity as a deposit for a new mortgage?

jenamac10

Another stressed Mum wants to keep her family home after marital separation, but how? We have a joint mortgage, the house is valued at almost double that now. I want to keep the house and give him a cash sum, which he has agreed to. My current provider says they cannot remortage to the value that I need, based on my salary. Which seems crazy as the value of the house is still a third more than I want to mortgage for. Is it worth going to a broker to see if another lender can use the equity as a deposit?:o:sad:

_Andy_

What is your income, how much do you want to borrow to raise the deposit, how much is currently owing, how much is the existing home worth?

Cannon_Fodder

Its NOTHING to do with leaving 1/3rd value in the house. You'd want to do that to get a decent interest rate, anyway.

You have to be able to afford the mortgage. i.e. Have sufficient income. Doesn't matter if it was a 1% mortgage, if you have zero/tiny income, you wouldn't get it.

Doubling in value sounds great, but its actually the problem - the ex is entitled to half that gain, plus you need to take on the existing mortgage. There are not many single people who can suddenly take on two-thirds of their house in mortgage, against their income.

Another lender might have slightly different rules on affordability, but a self-styled 'mum' presumably has little income/salary, for the fine detail to make much difference.

ferf1223

Forgive me for piggybacking but we have a similar question though different circumstances...we are close to paying our mortgage off (and feel very lucky for it)...our plan is to pay this one off and then buy a new house...move to the new house and rent the current property out. We would not have an issue with qualifying for a mortgage for the value of the new property (and feel very lucky for it).

Problem is that in order to buy a new house we would need a deposit and while we have a good amount in savings, we want some fall-back cash in the bank - so don't want to use all the savings for the new deposit...and saving up 20% of the cost of another house will take some time (obviously).

We're planning on talking to our bank - but I was just wondering if in general we could use the existing house once it's paid off in lieu of a deposit on the new house? Have tried searching online but struggling to find an answer with the search terms we're using.