Small Mortgage against part owned house

rickatron89

Hi guys,

I was wondering if anyone can point me in the right direction, or tell me if i'm wasting my time.

I own a third of a house (other 2 thirds owned by sibling and parent) worth approximately £165,000 (so my share worth around £55,000). The house is mortgage free and is let via an estate agent.

I was wondering if I could secure a mortgage against my third of the property, for around £25,000. This would be to pay off car finance and credit card.

My annual wage is a guaranteed £18,000 before OT or bonus.

Is this likely/possible? and where would the best placed be to start? Or is it a wild goose chase?

Thanks

Rickatron

Gary123456790

This will be very difficult on several levels to get a BTL mortgage on the property you describe for a small amount. It would also have high fees, etc.

It would be much easier to downgrade your car and cover the remaining with the cheapest loan you can.

You should really address your incomings and outgoings if you want to sort this properly, you could look at the debt-free wannabe forum, they have a Statement of Affairs (SOA) where you list everything and then people say where you can reasonably cut back.

Gary.

kingstreet

You can't mortgage part of a property as a lender can't repossess part of a property if you default.

All you can do is mortgage all the property and the other owners would have to apply jointly with you.

rickatron89

Thank you guys for your responses. This is greatly appreciated.

It may be an option that the other 2 owners look to buy me out completely?

Do you know if this would still be a buy to let mortgage as the house is already owned?

kingstreet

Yes, they could buy you out.

It would be a buy to let mortgage they should seek, if the property is let.

rickatron89

Am I correct in stating that a buy to let mortgage only takes into account the rent that is earned from the property as assessment on whether the mortgage is approved?

I appreciate a credit check will be done on them as well.

kingstreet

The rent needs to be 125% of the monthly mortgage interest payment, assuming a mortgage rate of perhaps 6%.

Some lenders insist on a high personal income on top, £20K or even more in some circumstances.

I suggest speaking to a broker to establish the correct options.