Advice please on getting a mortgage

trebor800

Hi,
I currently own a place with a friend where we have a joint mortgage. My friend now wants to sell the place and I don't so ideally I would like to buy him out of the flat.

I presume the mortgage company would no take into account the prompt payments etc over the past few years and would require me to take out a brand new mortgage in my name.

The flat is now worth around $210k and I am on a salary of $35k. Would I be able to get a mortgage on my own for this? I realise that if I were a new buyer then I would need a larger salary but would the fact that I already have a mortgage on half the place make a difference?

Any advice would be greatly appreciated!!

kingstreet

You haven't actually said how much is outstanding on the mortgage, so we've no way of knowing if it's within your borrowing power. Your payment record has little influence on how much you can borrow.

As an example, the Halifax affordability calculator says you could borrow;-

Credit score C - £169,515
Credit score B - £175,000
Credit score A - £175,000

These assume a 25 year repayment mortgage at 80% LTV with an income of £35k with no credit commitments and no dependent children.

You have the option of approaching your existing lender to take on the mortgage alone and you'll need to do a transfer of equity, for which a solicitor will be needed and a cost is incurred.

Alternatively, you could remortgage to a new lender in your sole name and the transfer of equity will be dealt with by the solicitor handling the remortgage, although the TofE will still cost you money as lenders don't include them in the "free legals" deals.

trebor800

thanks for the reply

I am on an interest only mortgage, we borrowed 208k.

So you don't think my current lender would take into account my past 'good behaviour' in having no problems paying the mortgage and just see me as a brand new client?

I guess if that is true I would have to find 33k and they would loan me the remaining 175k if I fell in the A credit band?

Thrugelmir

trebor800 wrote: »

t
I am on an interest only mortgage, we borrowed 208k.

Shame you didn't use the last few years to reduce the capital balance owed.

You won't find many lenders offering an interest only mortgage with a LTV above 75% in the current market.