Mortgage Advice For Separation

rawdon51

Hi. Wondered if someone may be able to advise on the situation I am currently facing. Myself and partner are sadly (for both of us) separating after 20 years together. We share ownership of our home in Yorkshire, which has just been valued at around £500k. We have a mortgage of £250k which was secured under a tracker deal at base+1% that ends at the end of 2026 (the mortgage, not the rate obviously). I have a health salary and earnings (employed) of around £120k p.a. My partner is a part qualified accountant and is trying to get back into work after a long period out, and getting there, but not quite there yet (she is contracting, but hoping to take a step back into permanent employment at around £20k p.a. initially).

So there's the background. Since our current home is on a great mortgage, and also has ties for our child, I would like if possible to keep the house on. However, I do not have the capital to buy my partner out of her 50% share (Most of the capital we have had available to us has been invested in our home, so no large bank accounts left). Based on these circumstances, does anyone have any advice as to how I could raise the capital to purchase a second home for my partner, without disposing of our first? I was contemplating in the area of £150k-£200k in terms of purchase price of the second property.

Thanks for your help.

kingstreet

Additional borrowing from your existing lender, while removing your partner via transfer of equity, or if necessary remortgage to a new sole mortgage with a new lender with the transfer of equity.

rawdon51

Thanks for the reply Kingstreet. So not tried to get a mortgage recently. Are you saying that with multiples these days I would be likely to be able to borrow enough extra based on my income to buy the second property at the kind of level I indicated (£150k-£200k), on top of continuing with the current £250k on the existing place?

kingstreet

Assuming decent term of 20+ years and little existing credit/dependents, you should be able to borrow upto 5x income.

Best way to approach this depends on current lender's attitude to purpose of borrowing, what loan to value they will increase to, or if best to go remortgage route.

rawdon51

OK I'll go back to HSBC for now. Thanks again.

kingstreet

HSBC don't offer 5x income, so if you get a no from them, don't assume you'll get the same everywhere else.