Two mortgage question

The_Engineer_2

Hello everyone,
I need some advice on the best way forward in my situation. I got married recently and my wife has a joint mortgage with her sister. That property is currently lived in by her sister, whilst we are renting a flat closer to where we work. I would like to buy a home of our own, our joint gross income is 70k and i have no credit issues as all. However my wife has a credit score of 680.

My question is, would it be possible to get a joint mortgage even with her existing joint mortgage with her sister?

Secondly, with her existing joint mortgage, we are thinking of converting it to a buy-to-let under both our names and taking her sisters name off. If we did this first, would we still be able to get a mortgage of our own and would I still have my first time buyer status?

Thanks.

HappyMJ

The_Engineer wrote: »

Hello everyone,
I need some advice on the best way forward in my situation. I got married recently and my wife has a joint mortgage with her sister. That property is currently lived in by her sister, whilst we are renting a flat closer to where we work. I would like to buy a home of our own, our joint gross income is 70k and i have no credit issues as all. However my wife has a credit score of 680.

My question is, would it be possible to get a joint mortgage even with her existing joint mortgage with her sister?

Secondly, with her existing joint mortgage, we are thinking of converting it to a buy-to-let under both our names and taking her sisters name off. If we did this first, would we still be able to get a mortgage of our own and would I still have my first time buyer status?

Thanks.

Yes you can get a new mortgage subject to affordability.

If you are named on a mortgage you won't be a first time buyer any more.

holly_hobby

You could change the propety onto a BTL mge and remove the sister from the current mge and deeds IF she will no longer be resident post completion. (this is to do with vacant possession, and beneficial interest, which will affect the lenders application for any future possession order).

At the moment, your wife is a joint mortgagor with her sister, which means that the existing mortgage commitment will be included in the affordability assessment on your own new home.

Another way to avoid this, would be to have your wife's name removed from the existing mge and deeds, which will be subject to the sister's sole income be sufficient to service the mge.

Hope this helps

Holly