Mortgage Situation after Divorce

smerch1468

I am currently going through a divorce with my ex, having lost my job last year I managed to keep her lawyer at bay (he wanted to force a sale of the house). I have now landed a job with a basic salary of £40k, there will also be a bonus that will be paid if I generate above a certain level of income for my new firm. The probationary period is 6 months.

The property is worth approx £265-£270k, the outstanding mortgage is approx £178-£179k. I have £30k to buy my ex out of her share of the property which has been agreed with her lawyer (I put the deposit down when we purchased). After I have paid her off this will leave me with personal debts of £11k.

I also have a share in an inherited house from my late father which is my mothers main residence, I inherited 1/3rd of the property. The other 2/3rds is owned by my mother and sister. There is no mortgage on this property and my share is worth approx £130k.

My existing lender is Bank of Ireland and I have the following questions:

1) BOI have said that they will lend 4.5 x my salary assuming I have no debts and pass their credit checks. Now I have a new job I will be in a position to reduce my personal debts but im still likely to have around £5k of unsecured debts by the time my probation ends. If this is the case, will BOI possibly consider my second property as a guarantee against this mortgage. As things stand I can easily afford the mortgage and I have a lodger giving me extra income (I could get a second lodger as I have a four bed property).

2) If I cannot secure a mortgage with BOI is it likely all other mainstream lenders will give me the same sort of response.

3) If I cannot secure a residential mortgage, does my situation blend well to converting it into a buy to let. This is not ideal for me as I will have to find alternative accomodation, but I have worked out the surplus rent would cover the cost of renting a small flat.

I do not really want to downsize as I see my property as a good investment whether I live in it or go down the buy to let route.

Opinions would be appreciated.

Thanks

smerch1468

Bumpety bump, experts opinions would be appreciated.

Thrugelmir

The immediate issues that spring to mind. Is that the 2nd property is your mother home and you only own a share. So not suitable as a guarantee for your personal debts.

Are you looking to borrow the additional £30k to buy your ex-wife out?

The personal debts will reduce the amount you can borrow on a mortgage.

Dave_Ham

Hi there,

Ok - for this purpose forget about the inheritance property. It is incredibly unlikely any lender will consider this.

Subject to credit score, the buy 2 let is a possibility.

However, there are lenders that subject to credit score will allow upto 5 times single salary.

See what BOI say and then take a call and get a professional involved if necessary...