Possible??

costingbunny_2

Hi
Currently have my house for sale which will leave me with around £90K if sold as I have a mortgage of £100K. My partner is sellnig his house which will leave him with £135K - he has no mortgage.

We were just buying a 'regular' home together for £300K but have seen a house for £219K which needs work (cosmetic only) but will avoid the stamp duty of 3%.

The house is empty and the owner has left the monies to charity so it is on the market for 2 weeks to get interest and then you have to put an offer in and state your position.

Question - can we afford it without selling our homes? We have around £40K cash and my partner earns around £35K. Presumably I cannot be included as I have a mortgage?

Also, if possible, once we sell up could we pay off a massive chunk/pay off the mortgage?

Idea is not to make money but to spend £50K or so on updating the house and live in it forever.

Thanks

kingstreet

There's nothing to stop you getting a joint mortgage using the cash as a deposit and your joint incomes. Let the lender know the current mortgage won't be paid off before completion of the new one though.

At worst, the lender may take the monthly payment for your mortgage off your income before applying the multiplier as it will do with any other credit agreements.

Make sure you go for a product with no early repayment penalties so you can reduce the new mortgage as soon as you sell.

What's your income and how much is the monthly mortgage payment for the current property?

costingbunny_2

Thanks. I thought you couldnt hold 2 residential mortgages? My income is around £45K and the current mortgage payments are around £550. Ta

Dave_Ham

Kingstreet as always spot on with quick information supplied.

This looks as though it could have enough legs to get through, obviously we are not blessed with all the detail so cannot give a definitive.

It is highly likely you will need an experienced broker though, so worth asking friends or family for recommendations..

Its all sounds quite exciting!

Good luck

kingstreet

costingbunny wrote: »

Thanks. I thought you couldnt hold 2 residential mortgages? My income is around £45K and the current mortgage payments are around £550. Ta

You can hold as many residential mortgages as you can afford to pay.

With a combined income of £80k and a mortgage cost of £6,600pa, you would be able to borrow around £250k. If you only need £169k on a £219k purchase you should be fine. Subject to your other credit commitments, of course.

As Dave said, a good independent or whole market broker should be able to place this with the right lender on a good penalty-free product for you.