Mortgage with sister and mortgage with partner

tlg_2

I hope someone may be able to offer some advice.

For the past five years I have had a joint mortgage with my sister on a house in Kent in which she lives and has a lodger. My contribution to the £412 a month mortgage is £150 per month (the rest being paid by my sister).

I am now in a position to buy a property with my girlfriend and therefore require a joint mortgage with her.

Obviously the first mortgage will be taken into account when considering our application but will they take into account only my £150 contribution or the full £412 as the amount I am liable to pay? Will our salaries have to be able to cover the full amounts of both mortgage payments?

I have no adverse credit and am in a position to be able to afford my contribution to both mortgages.

Thanks in advance for any help on this.

HelpWhereIcan

tlg wrote: »

Obviously the first mortgage will be taken into account when considering our application but will they take into account only my £150 contribution or the full £412 as the amount I am liable to pay?

You guessed it, the full £412 in most cases - but it is not quite that simple. some lenders look at the monthly payment, most others look at the total balance you owe so..

tlg wrote: »

Will our salaries have to be able to cover the full amounts of both mortgage payments?

for all lenders the answer will be yes, but some will look to have the mortgage payment covered from your net income and others will look for your combined borrowing power to cover both mortgages.

e.g. if you owe £150,000 already with your sister and you and the girlfriend can borrow a total of £300,000 you will only be able to get £150,000 as a new mortgage.

tlg wrote: »

I have no adverse credit and am in a position to be able to afford my contribution to both mortgages.

Thanks in advance for any help on this.

That puts you in a reasonable position to start with but the amount you can borrow will change from lender to lender (there will even be some that will look at the fact that your sister lives in the other house and the amount of actual commitment you have but they will need a case presenting to them)

If you need further advice or want someone to take the hassle away from you get some advice from a whole of market broker.

Ideally use personal reccomendations to pick one or even something like the Yellow pages etc. No harm in speaking to more than one and always make sure to ask the questions Martin suggests in http://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid1101649966,86816#step2.

Be careful of anyone who approaches you unsolicited and use the services of a face to face adviser unless you are confident enough to deal with someone via post & email.

Hope this helps

Good Luck

tlg_2

Thank you very much for your detailed response and advice.

The housebuilder has suggested we try New Homes Mortgage Helpline but I am not sure if they are a whole of market broker or not.

I will have a look at the list of questions to ask on this site.

Thanks again!