Mortgage Guarantor

Ultra_2

Facts and figures first.

I will soon have a £75K mortgage on a property worth £100k

My earnings are £32K/annum

I have £45K capital raised from the re-mortgage.

I have a credit card debt of less than £2K.


Original plan

£45k to go to ex-wife as a deposit for a £60k house (25% LTV), Mortgage required for £15K only. As she is a low earner she would probably be looking to pay back no more than £100 a month in mortgage fees so probably looking at 20 year mortgage.

Unfortunately she has been refused a mortgage because of her low earnings.

Any suggestions?
Could I be a Guarantor? Could I get a 2nd mortgage?

Any advice appreciated.

GuidoT

You can attempt to get a second mortgage, there is no reason in principle why you cannot have more than one, but whether you actually get one will depend on the specific lenders criteria. Based on the above, £32K income to cover £90K of debt is looks okay to me, but the banks are difficult creatures.

Consider whether you better off with a good rate personal loan for £15K, there are alot of fees associated with a mortgage that you would avoid with a loan (of course the interest rate will be higher with a loan). A personal loan can also be unsecured.

Do not know about guarantors.