Mortgage advice

cableguy1

Hi All,

A quick question, my brother purchased a property around 9 months ago and i went on the mortgage as a second person. We were told we could borrow around 190k but only took out around 110k with a deposit of around 25k..

Now this is his property and my name is there just to bolster his borrowing (i don't actually live i the property), I'm looking to buy a property myself with me as the 1st income and him as the 2nd, are we able to do this?

any limitations? you could call it a second mortgage but it isn't really as ill be living in it...

cheers

kingstreet

A mortgage is a joint and several liability commitment, so despite an applicant being named first or second their commitment and liability is for 100% of the mortgage and its monthly payments. If he can't pay, you must and vice versa.

There are lenders who will allow you to purchase another residential property, but I doubt they will be happy to accept another joint application, as you aren't going to be letting the current property.

If you apply solely, they will probably treat the other mortgage like a credit agreement and remove the monthly cost from your income before multiplying it out, or they may deduct the capital amount from your borrowing power.

Either way, you're going to need a broker's help to do this. A good independent or whole market adviser would be a good first step. Don't forget you're going to need a deposit and funds to cover fees again too.

cableguy1

Many thanks for the reply, I have managed to find a broker who is also a member of the mortgage advice bureau, will give them a call tomorrow morning. What if I were to apply again as a joint applicant but with someone else as the second applicant?

thanks.

kingstreet

Mortgage Advice Bureau, aren't they the firm which charges £1,800 but only recommends commission paying deals as well?

I suggest you ask friends and relatives for a recommendation. Failing that, search here https://www.unbiased.co.uk switching off the website/email only option so you get a full list of possibles in your area, not just the paid advertisers.

Adding another borrower may help. The overall situation needs planning with an adviser. It requires too much information to do properly on here.