Higher mortgage 2 years in a row?

swebber

Had problems with title.

I own a house with my ex, he has maved out and my new partner is living with me, I have a financial arrangment with my ex about buying him out, so no worries there, we are still friends.

Well anyway, we are getting the money together now for him and hope to re-mortgage with my new partner. What we aren't sure about is, that we aren't earning alot right now, but want to take money from the house as it is in dire need of work and my Dad has lent me money to pay of the ex.

Now my Dad is not in a rush for the money, but is one of these people who is always vague and I can't get straight answers from him, trust me is complicated!!!

Well the whoe point is, should I get all the money I need this time when I re-mortgage and then possible have money sitting around waiting, for my Dad to come back to this country, (told you it was complicated) or should I take the minimum I need and then maybe have to re-martgage again next year to get the money, it makes choosing a new mortgage hard.

Would mortgage companies look harshly on us taking money 2 years in a row?????

Ahhh, I am so useless at decisions, any advice please.

jamesd

You might consider either a flexible mortgage with drawdown of overpayments or an offset mortgage. Then you can take out a mortgage for the higher amount and use the amount owed to your father as an overpayment or offset immediately after taking out the mortgage. If he wants the money you can then use a drawdown or withdraw from the offset account to get his money.

JoeK_3

jamesd wrote: »

You might consider either a flexible mortgage with drawdown of overpayments or an offset mortgage. Then you can take out a mortgage for the higher amount and use the amount owed to your father as an overpayment or offset immediately after taking out the mortgage. If he wants the money you can then use a drawdown or withdraw from the offset account to get his money.

Nice one James.

If you do go down the flexible route, beware that the future drawdown option is based on income and affordability when you apply for the drawdown.

JoeK

swebber

Jamesd, that is a very good idea that hadn't even occured to me and thanks for the warning JoeK.

Just one question though, are the rates much higher?

jamesd

For a flexible mortgage, no. For an offset mortgage, about a quarter of a percent higher than flexible.