Moving joint mortgage into my name

lightspeed

Hi

Following some recent posts regarding my difficult situation i have now contacted the Alliance and Leicester and they have instructed me to fill in a mortgage transfer application form.

I am still planning to buy out my ex-partner and would like to know if there are any things that i can do to support my application?

At the time of purchase...

Mortgage = 139K IO (me = 22K, partner = 18K)

At present...

Mortgage = 139K IO @ 4.59%
House value = approx 180K (77.2% LTV)
Income = 22K (6.31 times single income - obviously far too far and irresponsible)
Lodger is in place (90% sure of this) rental income = 400pm (4800Kpa) i realise that this may be subject to tax
There is the possibility of renting out the 3rd bedroom but this is purely an idea at the moment.

Total income = 26800K (5.18 times total income)

I have been paying the mortgage for the past 7 months from my account without fail. I am a graduate and work as a teacher so will be subject to regular salary increases. I have no other debt and must have an excellent credit rating.

I am fully aware that this is not a conventional situation but any advice would be appreciated.

Rick62

The rental income should be mostly tax free under the government rent a room scheme, however many lenders will not include this income in their calculations.

You can apply, however I would be surprised if they agree based on your earnings, although the fact that you have been paying it yourself wil be in your favour.

Is there any chance that your partner would agree to stay on the mortgage for a year or two until your earnings have increased?

lightspeed

Thanks for the reply

I realise my salary is a stumbling block here. Despite this, at the moment the mortgage is affordable on my income and the rental income pretty much covers what my partner contributed, i may even be slightly better off.

I very much doubt that she will entertain the idea of staying on the mortgage. TBH i wouldnt like that either. I know it will be a struggle at first and have no illusions, however, given a couple of years i should be in a much stronger position.

I have got a gauranteur option available to me as my mum has about 150K equity in her house, endownments that will pay the remainder of the mortgage and she still has 6 years until retirement with an income of approx 36K.

Rick62

They may consider your mother as guarantor, however the problem is her 'affordability' as she is retiring in 6 years and also if she also has her own mortgage.

Best thing is to apply to Alliance & Leicester, they will probably say no but then speak to them, ask to speak to an underwriter if possible and ask how far off you were and if they have any ideas what else you could do. Don't take an initial 'no' as being final, use it as the starting point.

Until you have applied they don't have enough information to tell you your options.