Going from sole to joint mortgage and additional borrowing - What to do?

papermoney

(Reposted with a different post title as the other one was too vague)

Currently the house is in my husbands name (it was his house before we met and married). We want to take some additional borrowing for home improvements and we won't be able to do this with just my husband on the mortgage so we want to add me to it (as I will start full time work soon).

I am wondering if it would be better to add me to the current mortgage (the current provider has said this will be about £300) and then apply for additional borrowing or to completely take out a new mortgage with a new lender (we would have to pay the redemption charges).

I know I should really speak to an IFA but i'm yet to find one in my area. But I will keep searching.

Details:...
Current mortgage 86k (3k redemption if paid before Jan 2012)
We want to borrow about 15k (so would take it up to about 101k give or take).
Mortgage is currently on Interest only, roughly 3% (not 100% of this though) it was on a 2 year deal as of January 2010
The value of the house is about 160k but say 150k to be on the safe side.
Husband is self employed and records show 5k profit
I will be on 35k
We would like to go on a fixed, repayment mortgage.
I currently have to pay 220 to NR for a mortgage which ended in August 2009 due to selling it for less than I owed on the mortgage. This will continue for the next 4 years.


Any thoughts would be appreciated. Thanks.

Senior_Paper_Monitor

Don't waste the money on 'adding you to the current mortgage' - no impact whatsoever other than the cost in the circumstances you describe.

Your decision to use an IFA (but I seriously suggest you add the definition 'mortgage broker/adviser' to that - many IFA's do not do mortgages, some do as a sideline and, of course, many do so very well ... mortgage brokers obviously concentrate on that area) is sensible in the circumstances you describe.

I am not sure if I am permitted to link search sites to here - will check and come back with some if allowed

Senior_Paper_Monitor

It appears it is OK (apologies to MODs if i have got this wrong), so .....

www.searchmortgagebroker.co.uk (paid for site, includes 'IFAs' who choose to register)

www.ifa-guide.co.uk (free registration site covering IFSs and mortgage brokers)

www.mortgagebrokerlocally.com (free registration)

www.ourproperty.co.uk (free registration)

or try business directories such as

www.thompsonlocal.co.uk (free listing with paid for highlighting)

www.yell.com (free listing with paid for highlights)

www.freeindex.co.uk (free listing only with ranking based on testimonials)


.... also bear in mind that a good broker/adviser at a distance may be better than a local fool (hence friend/family referral is often the best bet).

Not a complete list by any means but a starting point for you - contact a few by all means, see who talks commense sense (and listens to you) and choose.

Good luck

papermoney

Thanks for the links and sorry I havent replied before now. I will certainly have a look at those. Mr Papermoney is suppose to be ringing the mortgage company tomorrow just to go over details so we can weigh up our options properly.

Many thanks