Can I get a second mortgage?

Thomas70

I jointly own a flat and we have around 91K from a 123K mortgage still to pay. We have decided not to sell just yet, but I am thinking of moving to another area. Ive looked at a few places and the price is around 140K. If I pay a deposit of around 30-40K do you think I will be able to get a second mortgage with an income of 25K. The last time I checked a my credit score was good, and I pay 300 monthly for the current mortgage.

opinions4u

If you switch your existing place to a BTL deal there's a chance.

Thomas70

opinions4u wrote: »

If you switch your existing place to a BTL deal there's a chance.

For the time being that wont be an option as my co-owner will still be living at the flat.

opinions4u

Thomas70 wrote: »

For the time being that wont be an option as my co-owner will still be living at the flat.

£200k of mortgage debt on a £25k salary isn't going to happen.

holly_hobby

If your current home won't be let, then the existing mge commitment will be considered a debt, and therefore included in any affordability matrix - so its very doubtful your 25k would be sufficient to svc circa 200k of mge debt - given it'll equate to 8 x income ! (and assuming no other loans).

The only alternative (if your co owners income is sufficient) would be to have your name removed from the existing mge/deeds - this is called a transfer of equity, and should you proceed, of course you would need to come to an arrangement with your co -owner re your share of equity on sale.

Hope this helps

Holly

kingstreet

£89,265 is about the best you'll get, assuming you have no other credit and no dependents.

That's using your current mortgage payment like a credit commitment and deducting that £300 per month from affordability. Some lenders do it that way.