advice from mortgage advisor please

itsfrommark

Hi,

My partner owns a flat worth 190K. She wishes to sell and buy another at a similar price. The mortgage is £40K c.2% tracker (Barclays) and is portable.

She obtained the loan 10 years ago while employed on a salary c. £20K but is freelance now and therefore does not have regular salary to declare an income of at least £10K (i.e. 4 x income to cover £40K as required by the bank). Currently the mortgage is c. £250 month which is covered by income from lodgers. Apparently to transfer this to another property the lodger income does not count, therefore it would seem she can no longer provide evidence of ability to pay despite the fact that she can easily cover the repayments through the lodger income.

Other information: I have a house (valued £350K) with a small (15K) mortgage - can I act as guarantor or raise the £40K loan against my house or be placed on my partner's mortgage (I have a salary of £30K) or is there a more simple obvious route????

What is the way round this please?

Thanks Mark

opinions4u

Does she have any accounts for her freelance work?

What does she tell the tax man she earns?

Wh05apk

If she banks with Barclays she may have a "PAML" (pre-approved mortgage limit) based on her isage of the accounts, if so that may be enough for her needs, although she would still have to demonstarte some income through accounts etc.

Failing that you could easily raise the money on yours and clear her mortgage, possibly placing a second charge on her property to protect your investment.

itsfrommark

Many thanks Who5PKA and Opinions4U. She does bank with Barclay's and no she does not have a PAML or always earn the 10K a year to cover the £40K mortgage (certainly not in the last 12 months) But she always has sufficient funds from the lodgers (which are declared) but do not count in terms of annual accounts. Sounds as if we would have to follow the line of raising the funds on mine and placing a second charge on her property as suggested. Any other suggestions welcome.

Best wishes Mark