Help!

cdbe1

We need some guidance urgently. Situation as follows:

We live in Bucks but want to move to Manchester next year. We have found a house there and had our offer accepted. Price is £148k. My wife is a teacher on 45K and I am a househusband. We currently live in a house in Bucks that is owned outright in my name (worth £200k). Our plan is to buy the new house (which needs a bit of updating) and move up there (and sell the Bucks house) next summer (when my wife finds a job). We have a deposit of £70k so need about £85K. We applied for a mortgage with Yorkshire Building Society who have just turned us down - because we have explained our situation and plans to them - they were not happy with the facts that: 1. my wife has not got a job in Manchester yet and 2. that the house up there would be empty for over 6 months etc. They went on to say they only do standard residential mortgages and could see this turning into a BTL situation at some point so not their cup of tea.

We need another mortgage asap either secured against the new house or our current one I guess? (presumably we would need to get the house put in joint names as it is currently in my name but my wife has the income).

I think we will need a broker!

Can anyone recommend, and advise what we should say bearing in mind we have just been creditchecked by YBS - I think our current downfall has been our honesty and openness. Speed is of the essence so I think a new mortgage on existing property could be our best chance - if we want 85k would they ask what its for?

Any suggestions greatly appreciated - I am currently thinking of starting with L&C.

Senior_Paper_Monitor

"honesty and openess" has not been your downfall - as these attributes are a necessary part of any mortgage application.

The downfall has been applying to the wrong ender - i.e not criteria checking first

You have hit the nail on the head - get a broker to look at the options and pre-check/clear the details via their BDM and its should be pretty easy.

Also discuss the property insurance issues that might apply.

Wh05apk

You may wish to consider remortgaging your current property, however this would need to go into joint names if you have no income, which would involve a t of e, and potential stamp duty by adding your wife (unless she is a FTB? if so she would lose stamp exemption on the new property)

Lenders will always be cautious of you buying a property a long way from home without a new job, although you may find a lender prepared to do it almost as a "holiday home"

You have a potentially complex situation so would suggest you speak to a good broker.

cdbe1

Thanks for your fast reponses - very helpful.

L&C have identified 3 possible options:

1.Remortgage current - they also identified potential issue of stamp duty (wife is not an FTB) but could not advise on this?

2.Standard residential on new property left temporarily empty - if a lender will do this.

3.BTL on new property - this may work out ok I suppose as we did consider letting it for 6 months to take us to next year - I am just worried that this will take time and need the property redecorating/gas certifying etc before we get the mortgage? The sellers (bereavement sale) only accepted our offer on the understanding that there would be a quick completion.

cdbe1

OK. I am waiting to hear from my solicitor regarding stampduty on transfer of equity but believe this will not apply because there will be no mortgage on current house at time of transfer (gift) into joint names.

BTL mortgages seem very expensive in terms of fees in particular for a short term solution.

Regarding openness and honesty, we have been again been fully open with L&C but if we go down the route of borrowing against our existing property I do suspect it would be easier if we said we want to borrow £85k to convert the loft, pay for sons Uni and buy a new car (or a holiday home) than say it is to buy a house we wont live in until our only breadwinner can find a new job 200miles away!

At the end of the day we have very low outgoings and could run two houses and a mortgage for ever if we needed to.

GMS

Love the fact that the recommended bvrokerage of this site suggest a Buy to Let despite you wanting a residential according to your original post.

Gogled

Is your solicitor really having to look that up?

SDLT won't apply. Wouldn't even apply if you were selling a half share to her.

Mortgage is irrelevant.

cdbe1

Gogled, sorry - me not being clear - I was waiting to hear from her so I could ask the question - you are right, there will be no issue.

L&C have come back and recommended that we raise the money via a remortgage of our current property. The T of E will be done at same time.

Just have to spend the next week or so worrying about whether our mortgage refusal from YBS will affect the new application - broker has recommended some deals from Cov BS and ING.