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Remove ex-partner from Mortgage - help!

Hi all,

My sister has a house valued at £180 - 200k, she has a mortgage of £69k on the property but it is in joint names and she wishes to remove the other person as their relationship has broken down. He is happy for her to do this.

However, she earns very little - £5k per year, has 2 kids living with her and cant get a mortgage for the £69k - not surprising I hear you cry!

But - she has a further property which is also worth £180 - 200k and is mortgage free!!! She rents this out for £520 per month and this enables her to survive and run the main household.

She also has £40k in savings, which is invested and she doesnt want to touch or she will lose all interest she has accrued.

Is there anyway to sort her predicament?

Barclays and Santander dont want to know as she doesnt earn enough, even though she has a mortgage free property, has £40k cash to put down if needed and has £110k equity in property she needs mortgage for?!

Thanks muchly

Comments

  • opinions4u
    opinions4u Posts: 19,411 Forumite
    Sell the other property and pay the mortgage off.
  • choca_2
    choca_2 Posts: 6 Forumite
    Is selling the other property the only option? Not really the climate to do it, but if its only option...?
  • Wh05apk
    Wh05apk Posts: 2,938 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    choca wrote: »
    Is selling the other property the only option? Not really the climate to do it, but if its only option...?

    No, but a lot of posters on this board think having no debt (and/or assets) is the way to go.

    Does she get any tax credits, and/or maintenance, some lenders will accept those, how long has she been renting the property? again some lenders will take the rental income into account.

    Failing the above, she would be able to raise a buy to let mortgage on her other property, most lenders need a minimum income, so would suggest she contacts a broker who will know/be able to find out where she can do something.
    I am a mortgage adviser.
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • choca_2
    choca_2 Posts: 6 Forumite
    Cheers for the advice chaps!
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