Remortgage help

hanzi100

Hi there,

I am wondering if anyone else is in a similar situation to me and has any helpful advice or suggestions...

I bought my property 3 years ago with my brother, since then he has moved out and my partner has moved in. He has taken over my brothers half of the mortgage repayments, and we are now trying to buy my brother out.

My partner is divorced and is currently still on the mortgage of his ex wife's house which she gained in their divorce. This property is rented out and will be until October next year, when the idea is to sell it.

I have applied recently for mortgages on my own and in both mine and my partners joint names, and have come up against low valuations which mean that the lone to value percentage is too great for us to be able to take on the mortgage.

Has anyone else had this problem? I'm in disbelief that two people such ourselves with good salaries, who have never fallen behind on a single mortgage payment (or any other payments for that matter) cannot 'afford' to buy a modest home for their family!

Any advice would be greatly appreciated!
Hannah

blueberrypie

What is your loan-to-value?

hanzi100

We are going to need 90% mortgage i think, but its always so dependent on the valuations, which are coming out low!

Brock_and_Roll

A 90% mortgage is always going to be 90% of the valuation - not based off what you paid for it, or what you think its worth. Given the current economic situation, lack of mortgage funding and recent changes in demand/supply, it is hardly surprising that surveyors are being cautious with valuations. If you both have good jobs and can easily afford the mortgage, it should not take too long to save up sufficient cash to push the LTV down to a level that opens up plenty of mortgage options.

blueberrypie

Is your brother willing to stay on the mortgage until your partner's other house is sold? Until that mortgage is cleared, you are always going to have the problem that affordability is reduced, either by his financial commitment to that mortgage, or by having to apply based on your salary alone. Can you afford to overpay the mortgage? It might also be worth doing that in order to get the LTV down before you re-apply.

And stop applying randomly - lots of searches on your credit record don't look good. Talk to an independent advisor and find out which lenders would be more likely to consider your situation.

hanzi100

Thanks for all your advice,

We're not going to apply for any more mortgages until after christmas when both my partner and i should receive a bonus and payrise (fingers crossed)!

The biggest problem is that we could afford to overpay on the mortgage to get the LTV down, however this would leave us with little or nothing to buy my brother out with. Not sure which is better!

The biggest issue is that my brother has moved home with our parents until i can afford to buy him out, and i feel guilty that he is imposing upon my parents until i can afford to buy him out!

What a mess!