FTB situation

secretmachines

hi everyone

next year will be looking to buy a house with my OH (will then be wife).
I've not had a mortgage before, however she currently has a joint mortgage with her sister.

will this affect our mortgage application?
would there be any liability on our new property, should any payments/defaults happen on the sisters' property?

my initial thoughts are for my OH to 'sign over' her existing joint mortgage into her sisters' name?

if anyone has any advice, thoughts, experience, that'd be great

(just trying to get some basic info before taking it to a mortgage adviser, etc.

TrickyDicky

If the other house got repossessed, and there was a shortfall after sale, they could come after the 2nd house (or at least state an interest in it if you do not pay the shortfall via other means).

But the 2nd mortgage will affect her affordability anyway.
Its not as easy as signing over a mortgage. The sister will basically be handing in an application in her sole name, and will only be granted if the bank deem that she can afford it.

secretmachines

TrickyDicky wrote: »

If the other house got repossessed, and there was a shortfall after sale, they could come after the 2nd house (or at least state an interest in it if you do not pay the shortfall via other means).

But the 2nd mortgage will affect her affordability anyway.
Its not as easy as signing over a mortgage. The sister will basically be handing in an application in her sole name, and will only be granted if the bank deem that she can afford it.

hmm, this may not be as easy I thought then!

well I don't really want us to be (even vaguely) responsible for the other property... unlikely anything bad would happen, but if it did, it could get messy.

I guess it depends on how much their joint mortgage is for, and as such, how much has been paid off... as that will determine how much the sister would need to apply for.

I'm sure this can't be too much of an unusual situation, with a couple wanting to buy their first home, when one of them already has some kind of mortgage...