Second Mortgage

Peter_L

Hi All

Have current house worth approx £130k with £100k mortgage outstanding in joint names (deeds and mortgage). Also have unencumbered property worth approx. £160k in MY NAME only and looking to remortgage this to the tune of £80k to renovate and then move into, selling off our current mortgaged property.

Joint salary of approx. £53k (£37.5k & £15.5k split with mine being former), have been advised that will only get mortgage in my name only as wife's name not on deeds and because of this, may not meet affordability ? We also have 2 young children and get up to £5k benefits each year.

Anybody any ideas on whether I should be able to get 2nd mortgage before I waste time and effort trying ?

The intention is to sell our current mortgaged property only when the other house is updated and ready to move into due to young children when we'll hopefully only be left with a £50k mortgage.

Any tricks I may have missed - please don't say sell and then get another mortgage as this is not possible (although the easiest way to achieve this) as 1 of our children has a disability ... I know I could get a solicitor to transfer half title to wife before applying but want to avoid the hassle in doing this too ...

Thanks for any comments received ...

Thrugelmir

Adding another party to the title deeds of an unencumbered property isn't much of a hassle.

Not sure what other advice you expect to receive as you clearly know the situation.

CLAPTON

so your final house will be in your sole name
is your wife happy with that?

and as thrugelmir says, no real hassle to make the ownership joint and may save a lot of hassle with the mortgage

Peter_L

Thrugelmir wrote: »

Adding another party to the title deeds of an unencumbered property isn't much of a hassle.

Not sure what other advice you expect to receive as you clearly know the situation.

Went through hell and back when last transferred equity but to be fair I did stupidly use Wolstenholmes to do it ...

Advice I was asking was on affordability - given the figures quoted can anybody see a problem with the amount I was requesting as a broker I spoke to said that there could be problems of affordability with my income alone for 2nd mortgage.

Not really a problem with wife not being on deeds as my will is set up in her and the kids favour alone should something happen to me and she is the sole benifactor on my life assurance policy (as I am hers)

Thanks for any advice ...

CLAPTON

there is no hassle in transferring half the house to your wife; just see a normal solicitor or do it yourself via the land registry.
affordability issues will then be better as two incomes will be taken into consideration
if you should die and the house is jointly owned then it becomes your wife's outside probation ... a lot less hassle for her with virtually no hassle for you

Peter_L

Thanks for your thoughts - bit wary of using conveyancers and solicitors after my last 2 attempts - either very expensive or useless or both ! Have come across a DIY transfer of equity pack from this site:

http://freeconveyancingadvice.co.uk/diy_transfer_of_equity_kit.html

Totally free and claims to explain with templates on how to transfer equity without the need for Legal representation. Anybody come across this before or have any comments/concerns over using such a kit ?

Thanks in advance

Peter_L

Wow 187 views and nobody has any experience of DIY transfer of equity ?