Splitting on mortgage with bro, and getting new mortgage with girlfriend...

lombrozo

My girlfriend wants us to get a house together.

I currently have a £180k joint mortgage with my twin brother (of which we've paid off about £3k capital after 2 years).

I earn £42k a year, my brother earns £23k a year, my girlfriend earns £20k a year.

My girlfriend and I won't be able to get a full mortgage on a new property unless I end my current mortgage and sell-up (that's not completely true, we checked with our mortgage advisor and he said we could claim my current property is being rented out, giving us £160ish max mortgage on a new property).

We should make up to 20k profit if my brother and I sell-up now (half of which I can use as a deposit on the new place).

If we sell-up my brother won't be able to get a mortgage on his own. He'll be fu**ed.

My brother doesn't want to sell up.

What options do I have?

clutton_2

could your brother get a lodger in to pay your share of the mortgage

lombrozo

clutton wrote:

could your brother get a lodger in to pay your share of the mortgage

My bro said he'd be happy to pay ALL of the mortgage, but according to the advisor the NEW mortgage lender would still see the property as a debt of mine (and not just 50% of the mortgage, even though I am legally in 50-50 it's seen as a 100% debt to the new lender!).

Also, unless we sell I won't get any of the profit we've made (which could be up to £20k)...

clutton_2

transfer the house/mortgage into his name only; have a legal agreement drawn up (CRUCIAL even tho it is family) to say that when the house is sold you will get whatever percentage of the capital growth you both agree on.

this will not be cheap to do.

if he can pay all the mortgage why can't he get a mortgage himself ?

lombrozo

clutton wrote:

transfer the house/mortgage into his name only; have a legal agreement drawn up (CRUCIAL even tho it is family) to say that when the house is sold you will get whatever percentage of the capital growth you both agree on.

this will not be cheap to do.

if he can pay all the mortgage why can't he get a mortgage himself ?

The reason he can pay the full mortgage on his own is because he does some jobs 'on-the-side'. Illegally. So he can only tell the new lenders that he earns £23k per year.

If I get the mortgage transferred will the lender complain that he only earns £23k and won't be able to afford it?

Ems*Honie

If he can prove that he can get a certain amount of rental income from the property, they may consider transferring the mortgage, can he afford to buy out your profit?

clutton_2

why should a tax-cheat - for that is what he is - screw up your future ? I think he might be able to get a "self-certification" mortgage which means he does not have to show pay slips. But, what a selfish brother ..........

lombrozo

Ems*Honie: What proof would he need to show he can get a certain amount of rental income?

clutton: "self-certification"??? Also, I agree on the selfish front, had the shoe been on the other foot and he was asking to quit the mortgage instead of me I'd go along with it and rent a cheap place. But alas, he is my twin brother and I don't want to stitch him up...