Taking on my own mortgage when I already have two BTL mortgages

dave1972

Hello,

My wife and I split up recently and are currently going through a divorce. We've sold our marital home and split the equity already.

We also have two new build apartments which we purchased in 2006 and we've always rented those out. Both these properties are more or less in negative equity (one is in more negative equity than the other) so when we split up we decided to keep them until the prices rise, however long that might be. The two BTL mortgages are currently in both our names.

I am now living with my parents and my soon to be ex-wife is renting a house. However she now tells me she wants completely out of the two BTL flats and that she want to transfer the deeds and the two mortgages over to my name only.

What I want to know is this. If we were to transfer the BTL mortgages and the deeds to my name only (assuming the lenders agree to this), what are the chances of me getting a mortgage on my own home in the near future? Will it also affect the amount I can borrow?

I currently earn about £40K per annum and have no other debts apart from the two BTL mortgages. I've got an excellent credit history and never missed any payments.

Many thanks

Dave_Ham

Hi,

These should not affect your ability to purchase a residential mortgage and your borrowing ability.

Your issue will be (depending upon lenders in question) that they may not simply transfer the ownership over to you.

You will have to speak with them directly, as all lenders take a different stance on this.

Just thinking, you will obviously not be treated as a first time buyer if you buy on you own going forward. There are not too many advantages in any case, but thought I would mention...

dave1972

Thanks for your reply Dave. It reinforces what I already thought.

I've already contacted both lenders and they've sent me forms to fill in. Obviously they'll make a decision based on my financial circumstances.

holly_hobby

Transferring into you name (transfer of equity) shouldn't be an issue if these are historical self servicing lets.

With regards your residential mge app, as long as the BTLs are self sufficient, on an AST with at least 6 mths tenancy history, you should find a lender. Although some may want to factor the BTL commitments into their affordability matrix, whilst some won't and others will treat the resi mge application on 2nd mge criteria (ie circa max 85% ltv).

My advice would be to have a mge broker do the leg work on this for you.

Hope this helps

Holly

dave1972

Thanks Holly.