2nd joint residential mortgage?

mizzbiz

Hia all,

We have a flat that's close to being sold but isn't... and it might not go through. We have seen another house we want to buy and to be honest, we can afford to pay the mortgage on both. Th problem is, the current flat is in my partners name and he is the higher earner and I am the one who would have to get the mortgage on the second, on my paltry income of £30,000

Our flat is nowhere near the multiples on my partners income so he has the 'space' on his income that is not being utilised (current mortgage is 3x his income.

My question is, could he also apply for a joint mortgage with me even though we still have this ruddy flat? Like I say, we could afford to pay both mortgages should the worst come to the worst and it not sell, or we could rent the flat out. The problem is getting this house that we want now as it will go if we don't buy it.

Thanks in advance.

basscadette

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GMS

mizzbiz wrote: »

Hia all,

We have a flat that's close to being sold but isn't... and it might not go through. We have seen another house we want to buy and to be honest, we can afford to pay the mortgage on both. Th problem is, the current flat is in my partners name and he is the higher earner and I am the one who would have to get the mortgage on the second, on my paltry income of £18000.

Our flat is nowhere near the multiples on my partners income so he has the 'space' on his income that is not being utilised (current mortgage is 3x his income.

My question is, could he also apply for a joint mortgage with me even though we still have this ruddy flat? Like I say, we could afford to pay both mortgages should the worst come to the worst and it not sell, or we could rent the flat out. The problem is getting this house that we want now as it will go if we don't buy it.

Thanks in advance.

Saying he has the 'space' to borrow more when already at 3 x income is not true. Borrowing is not based purely on income multiples.

You could apply for another mortgage but the lender would take the current mortgage as a credit commitment which would restrict the amount you could borrow.

Do you have a deposit for a new property? Minimum 10%.

If you were to rent out the flat, either with 'Consent to Let' from current lender, or a Buy to Let remortgage then as long as criteria is met the mortgage on the flat would be ignored for affordability purposes for a new mortgage.

This would require equity though, minimum 25% if a Buy to Let remortgage.

What is the flat worth and what do you owe on it? What would you expect the monthly rental figure to be?

mizzbiz

Hi GMS,

Thank you for answering. It's comforting to know that we could apply for another whilst already having a mortgage. We have the deposit for the new place but are only at 85% on the flat mortgage and wouldn't have the funds to bring it down to 75%. We might be able to get consent for 12 months from NRAM for letting without the BTL equity but would like the second mortgage either way, even if we have to pay two mortgages until the flat sells.

We did a how much can you borrow calculator on Santander's website and, taking into account the mortgage payment on the flat and that we have very little debt, it said £143k. Alone from Santander I could get 70K. The house we want to buy is 90K, so this is truly the only way we can do it without selling the flat first.

herbiesjp

If incomes allow, then you can get two mortgages.

However, you would need that consent to let from NRAM.

You would also need to makes sure you fit Santander's criteria for having the property in the background - so a little more complex than simply looking at the figures.

mizzbiz

Why would we need consent to let the flat? We are hoping to keep it on the market rather than rent it out but renting was an option. The whole two mortgages thing wasn't meant to depend on renting it out as we can afford both mortgages on our salaries, especially temporarily.

herbiesjp

Sorry - misunderstood your previous post seeing as you mentioned asking NRAM for consent.

Best bet is call Santander (if you want to go with them) - and run it meticulously past them to see what they say.