how do you get two mortgages?

mayb_2

This is a bit complicated.

One person owns a house worth approx £175,000 - on which he owes £125000 on a fixed for 10 years mortgage at 5%. It will cost around £7000 to get out of this. The mortgage could be moved to a second property without penalty if the first one was sold.

This person wants to bring his brother into the mortgage on property so that they share it. The brother can raise about £86,000. He could cover the repayments on this at 5.5% over 25 years. Possibly could raise more but would have to spread the cost some way in order to afford it. He would then live in this house.

The first person wants to buy another house as well at a value of around £220,000.

Anyone got any suggestions as to the best way to achieve this. The first person can afford to repay the mortgages on both of these houses (after deducting the repayments on the £90,000 which will be covered by the brother) and will be buying the second house with a partner.

Is there any stamp duty to pay on the first house as it is already in the name of one buyer? Can responsibility for the first mortgage be limited to each persons share of the mortgage in some way?

Is it better to try to do a deal with one mortgage company or would it be better to split between two separate providers - one for each property?

How do you keep the costs down for solicitors fees etc.

Do you have to pay a fee to reserve a mortgage if you can take it on straight away (for first property)?

The existing mortgage company on the first house will not allow two separate mortgages for one house. They are suggesting that we as the parents buy part of the house outright using equity on our own property and the brother owes us? I suppose that way the brother could just have his name put on the deeds of the house and it becomes a private debt between family. This would free the first person to borrow more money on the second house having paid off most of the mortgage on the first one using our money.

We are prepared to act as garantors (can't spell that) for smaller mortgage.

What would you do? What would you reccommend? Any new thoughts?

Any comments would be welcome. Anyone already done anything like this?

Thanks.