Joint mortgages etc

adl1998

Hello everyone, I wonder if someone could help me sort out my current situation with remortgaging.

I bought a house with my brother about five years ago. I've just got married and we are going to buy him out together, with a new mortgage. He's taking a bit of deposit with him so we need to raise some capital, but we're still well within 80% LTV. We've gone to a competitive lender who are happy to lend us the money on the basis of our income and LTV, as a remortgage with capital raising, but have said that they might not be able to lend on the basis of the fact that the capital raise is not for home improvements. They want to credit check us and have a think about it before saying yes. I had a couple of questions:

1 - am I right approaching this as a remortgage or should I be acting as if I'm movng house?

2 - do you think it's worth taking the risk of going through the credit check if they're going to turn me down for a mortgage on the basis of a technicality? Will this screw up my credit file if I need to apply somewhere else? It's worth noting that the mortgage is a good 0.5% better than I can get anywhere else.

Thanks - I'm sure this situation is not that rare, and wonder if someone else has had a similar experience?

kingstreet

This is a combined remortgage with transfer of equity. The legal costs normally run to around £600 on top of any mortgage fees if you're removing one party and adding another.

It's a straightforward job most lenders shouldn't have a problem with.

If the only extra money being raised is to buy out your brother, this is for purchase of equity, not capital raising, so the home improvements issue should not apply. Capital raising is for debt consolidation, new car etc., not what you need it for...