Mortgage advice (joint mortgage wanted, second flat issue)

jp1181

Hi,
My girlfriend and both own flats, we live together in my flat and she rents hers out. We now want to buy a house together and are not sure what to do about keeping or selling her flat.

My flat has about 60'000 of equity in, so we will definitely be selling that so we can use it as our deposit.

Her flat has only 5-10000 equity so we were hoping to possibly keep it and continue renting it out. My question is how will affect what we can borrow for our joint mortgage?

00ec25

the mortgage against her flat will be included in your joint financial assessment as an existing debt so will reduice the total amount you can borrow. Whether that is a £ for £ reduction depends on the individual lender's own criteria

if she switches her mortgage to a BLT one that takes it out of the equation but the question then is would she get a BLT wiith only £5 - 10k equity - a BLT mortgage requires minimum 25% deposit (ie equity)?

jp1181

Thanks, that's what I thought might be the case, but I wasn't sure if they would lend at all with her having another mortgage.

Converting to BTL is a possibility, but would reduce our deposit available on the new place if we need to top up her equity to 25%.

Probably just try and sell both flats and keep it simple..