First time buyer, partner with mortgage

fragster

Hi,

I am just looking for some advice and a rough idea, potentially a mortgage advisor so if anyone can assist please post in the thread and I will get in touch for further guidance.

I am looking to buy my first house with my partner, but she already has an existing mortgage with a sibling which costs around £900/m total between them and she wants to keep, her sibling will continue to live in their property. I earn around £30k, she earns around £24k as a recent graduate starting an NHS job.

We are looking at properties around £190-200k and can put down a deposit around £35k from my own and her savings.

I don't know a great deal about mortgages at the moment, so far I have been looking at 2yr fixed and found a Nationwide one at 4.14% for 2 years then 3.99% based on 85% LTV. I don't know that we can actually get this yet, it was just from looking at a basic comparison table on the London & Country website.

Apart from her existing mortgage I can't think of any unusual circumstances, does this sound like a solid plan and should we be able to get a mortgage on this basis? I know her income won't contribute much towards the maximum value we can be lent due to her existing mortgage.

Any advice appreciated!

kingstreet

You'll just about scrape into Nationwide's max 85% for a second property.

They will tax her income with the cost of the current mortgage, so her income effectively falls by £10,800 a year. Assuming no other credit commitments, they will lend about £190,000.

fragster

Thanks for the advice, oddly this wasn't mentioned at all by the person at Natwest we spoke to!

I will have to look further into the second mortgage details, thanks for the info about Nationwide though, they seemed to offer the best rate we could find for a standard mortgage, not sure if this would be a different rate for the second property mortgage though?

P.S. Is that £190k figure the mortgage amount or the house total including deposit (e.g. mortgage is around £155k?)

kingstreet

NatWest?

The Nationwide figure is for the mortgage, based on 4.5x joint income, after them mortgage commitment.

fragster

I mention NatWest as we spoke to someone there a few days ago, and explained the situation fully but they made no mention of us needing a second property mortgage and were showing us mortgages from 90% LTV. I'm not sure if thats something that varies by lender though, I did get the feeling he didn't quite know what he was on about as he basically put numbers into a calculator and some of them didn't make sense, for example it gave us a figure for the mortgage and when the existing mortgage was mentioned the figure didn't change at all, which can't be right.

kingstreet

It isn't a special mortgage. It's just a mortgage, but some lenders offer a lower maximum loan to value as it's for a second property. I can only generalise about what some lenders do. I can't lay out every different lender's approach for you.

If you want to know a particular lender's approach, you need to ask the lender, but you have to watch out for badly trained staff and a tendency to think it doesn't happen if they don't do it, or their way is the only way...