Shared ownership mortgage port

munstermonkey

Hi all,

I'm hoping to buy my flatmates share of our flat in the next 2 months.

I am concerned about applying for the mortgage on my own.

I currently earn £41500 plus approx £10000 in overtime. The outstanding mortgage amount is approx £92000.

However, I have a loan with repayments of £425pcm for the next 24 months and the monthly rent for the shared ownership portion is £535.
The mortgage will be an additional £603pcm.

We are with The Woolwich and I have been trying to figure out ithe likelihood of being approved with my current outgoings.

Does the mortgagee company look at things like council tax and electricity as monthly outgoings when assessing your finances?

I have used some of the mortgage calculators available online-the possible amount available to me varies between £90-110k. I have some savings available, about £7,500- should I use some of it to reduce the mortgage amount and increase the possibility of being approved?

I have concluded that if I took over the mortgage and I would have £850pcm as disposabile income-will this be sufficient?

Also our fixes rate mortgage term runs out in September-we fixed at 5.2% and obviously there are much lower rates available. Should I discuss with my flatmate about remortgaging and then transferring the mortgage?

Emmzi

I'd say that iss a huge amount every month on rent and mortgage on your salary. You'll have not much money for life! By disposable income do you mean before or after bills?

How have you come to the amount you are going to pay your co-owner?

munstermonkey

The £850 is after all bills have been tamen into consideration.

I have agreed with an amount with my flatmate-the money for this is being kept separate.

Emmzi

well, as your bills seem huge, I just reckon you should mitigate if you can - your property is very likely worth less on the open market than you paid for it so I hope he is giving you a discount!!!

is your spare cash including (non guaranteed) overtime?

PasturesNew

£850/month is more than loads of people earn before they pay their rent/bills.

I'd be gloriously happy to have that much left over after mortgage/rent.

And once it's yours you can always take in a lodger (as you're used to sharing anyway) for 1-2 years to knock more chunks off the mortgage.