Mortgage Advise

fawny

Hi All,

Just after a bit of advise please. My husband & I want to buy a house together, we currently live in his house mortgage in his name. I moved in when we got together, at the time I had my own house & because I could not sell it I rent it out. I still own this property & have no intention of selling at the moment, it's on a residential mortgage, intrest only with the Bank Of Ireland(I have permission to let from them) & the rental income covers the mortgage, insurance etc.

We intend to sell his house & get a new mortgage together for the new property. The houses we are looking at are around the 330K mark & we have 132K deposit so the LTV of 60% I believe.

We were all set to go for the Post Office one 2.74% fixed for 5 years as that was a good deal, but i've just rung them to check something & they have said we won't qualify because I already have a residential mortgage with BOI & they will only let you have one. I can't redo the mortgage on my house as the mortgage is 98K & Zoopla estimates it's worth of 107K so not enough ltv.

Is it just BOI that have a problem with this or is this going to be a stumbling block for us? I'm now looking at the Britannia/Coop 2.79% fixed for 5 years, does anyone know if they will have an issue with me already having a residential mortgage? I will ring & check but just wondered if anyone could offer advise & reccommend any others that won't have a problem. Sorry I've gone on:o

Thanks in advance.

Thrugelmir

BOI provides the funding for Post Office mortgages.

fawny

Hi,

I see that now, so I assume that it's just the fact that yo can only have one residential mortgage with the same company & not that you can have more than one if we use another provider?

Thanks

Dave_Ham

It depends upon the specifics of the entire deal.

There may be solutions, but you will need to stop looking at the best buy rates as the solution is unlikely to be found there.

May be worth a chat with a broker, or some heavy research on lenders that may accept this situation.

Good luck

fawny

Hi,

I know I don't really understand the world of mortgages, but I really don't see what the problem is with having a second residential mortgage with my husband. My 1st house is let out & they never have an issue finding a tenant, I have money to cover the rent if it was unlet.

Never though this would be a stumbling block:(

Dave_Ham

The issue is that a residential mortgage should be lived in, in many lenders eyes. Whilst there are lenders that are more than happy to accept a consent to let contract and remove the mortgage from affordability, as you have found there are lenders that are not happy.

Typically, the lenders that offer the best rates are the ones that can afford to be the most selective.

Getting a mortgage in this situation should not be hard and most likely is not hard.

Getting the best mortgage rates available, given a non-straightforward situation is hard - as you are finding.

fawny

Ok thanks Dave, I will do some digging.