Mortgage application with partner who has previous joint mortgage

Biomass1

Hello,

I am a first time buyer Im looking to buy a property with my wife. I have £150,000 deposit, I have seen a property at £350,000 and have agreed a price at £330,000.

My gross income is: £27,000
Partners gross income: £15,000
Total: £42,000

I have spoken to a few banks and have been told that I can borrow up to £184,000.

My wife has just informed me that before we got married she helped her sister buy a home by getting a joint mortgage about 18months ago, the total amount of the mortgage was £68,000. My wife does not pay any outgoings to that house in terms of mortgage or bills, her outgoings total about £80/month.

In light of this would I still be able to get a mortgage to the amount (£180,000) i require?

Many thanks for reading this, appreciate all your help and feedback.

Simon_gloster

How it would lookbis a £248k mortgage debt between you on an income of £42k, around 6 times income. No lender will do this.

Did you declare the mortgage on the application, it seems not. I would if I was you!!!!

Option is for sis to approach their lender transfer her equity ou of the property then the debt will not be taken into account.

Is relatively straightforward, but not an overnight job.

Dave_Ham

Hi there,

Unfortunately the simple answer is no, this is going to affect your application significantly as this will be taken as a commitment.

Obviously there are many variables I do not have full sight of and therefore I do not want to estimate the impact it will have.

Is there anyway your wife can now be removed from this mortgage?
Do you receive any bonus/commission or overtime that you could potentially use to get the figure back where needed?

Simon_gloster

Is the new mortgage orbthe existing one with HSBC, Dave's a massive fan, right Dave?

As we have both said, affordability is an issue here, I struggle to understand how uou got £184k AIP on your income. Uou have not declared the mortgage debt....be very very careful in what your about to undertake.

Dave_Ham

Spot on Simon - my favourite bank at the moment...

I think the OP was unaware of his Wifes part on the other mortgage so has declared what he was aware of..

Then they have probably got 4.5 * joint incomes, probably with Abbey, Woolwich or Halifax I am guessing??

HappyMJ

Biomass1 wrote: »

Hello,

I am a first time buyer Im looking to buy a property with my wife. I have £150,000 deposit, I have seen a property at £350,000 and have agreed a price at £330,000.

My gross income is: £27,000
Partners gross income: £15,000
Total: £42,000

I have spoken to a few banks and have been told that I can borrow up to £184,000.

My wife has just informed me that before we got married she helped her sister buy a home by getting a joint mortgage about 18months ago, the total amount of the mortgage was £68,000. My wife does not pay any outgoings to that house in terms of mortgage or bills, her outgoings total about £80/month.

In light of this would I still be able to get a mortgage to the amount (£180,000) i require?

Many thanks for reading this, appreciate all your help and feedback.

That is a very large amount of loan compared to income. You may have an AIP to £184k but with income of £42k I would be very wary going anywhere near that limit.

Yes you could get a mortgage up to that amount it's just a warning to be careful.... A loss of one of your jobs will ruin everything. Are you thinking of getting an interest only loan and managing the capital repayment yourself? That would be the only way I can see to make it affordable.

Biomass1

I have a meeting to sort out the mortgage in a few days, I was thinking that they would look at both our bank statements and payslips over the last few months and see that there is no outstanding commitments and give us an estimate of how much we could borrow based on that. There have been no outgoings towards any payments from my wifes account so I don't see what the problem is, I'm thinking of just not mentioning it.

How would i go about removing my wife from the mortgage?

Dave_Ham

It is 90% likely to be on your Wifes credit file the bank check, not mentioning would be a boo-boo

Come on - we are all ready, what bank has given the AIP - I actually dont think this sounds like HSBC

The payslips and bank account common sense will just not work I am afraid.

Your Wife would need to be removed from the bank that mortgaged the property and removed from the deeds by a solicitor. Issue will be here that I assume your Wife was put on for a reason and this may not have been resolved and hence your Wife may not be able to be removed...

Simon_gloster

HappyMJ wrote: »

That is a very large amount of loan compared to income. You may have an AIP to £184k but with income of £42k I would be very wary going anywhere near that limit.

Yes you could get a mortgage up to that amount it's just a warning to be careful.... A loss of one of your jobs will ruin everything. Are you thinking of getting an interest only loan and managing the capital repayment yourself? That would be the only way I can see to make it affordable.

With Halifax, they have a credit reference summary on their system, so if no debt at all is declared, it'll pick it up anyway. As for Abbey, pulse, your in!!!! I'd try HSBC just to experience Countrywide if it was me.

The OP would struggle to get interest only with the big boys. Most have max LTV of 50% and LTSB need Abramovich's riches to qualify.

I cant scroll back up the thread, if they have offered
(330k I think) I would suggest revisiting the app and pulling the offer. The solicitor would find out eventually.

Simon_gloster

HappyMJ wrote: »

That is a very large amount of loan compared to income. You may have an AIP to £184k but with income of £42k I would be very wary going anywhere near that limit.

Yes you could get a mortgage up to that amount it's just a warning to be careful.... A loss of one of your jobs will ruin everything. Are you thinking of getting an interest only loan and managing the capital repayment yourself? That would be the only way I can see to make it affordable.

Biomass1 wrote: »

I have a meeting to sort out the mortgage in a few days, I was thinking that they would look at both our bank statements and payslips over the last few months and see that there is no outstanding commitments and give us an estimate of how much we could borrow based on that. There have been no outgoings towards any payments from my wifes account so I don't see what the problem is, I'm thinking of just not mentioning it.

How would i go about removing my wife from the mortgage?

Biomass, be very careful mate......mortgage fraud could mean bad bad things.
Eating porridge, scrubbing floors and basketball in a yard.

Whether or not she pays the mortgage is irrelevant. She owes as much as her sis. I sis stopped paying, they would chase your wife. Likewise if the property is sold for a profit your wife a legally entitled to have the .equity

Thrugelmir

Dave_Ham wrote: »

It is 90% likely to be on your Wifes credit file the bank check, not mentioning would be a boo-boo

Why only 90%?

Major failure if 10% of credit agreements are not disclosed. Would make credit checking totally worthless.