Additional mortgage

stu-b

Hello,

I share a flat with a friend - we are both named on the mortgage. We bought at the end of 2010 and agreed that we would live together for about 4 or 5 years (this was to get us on the property ladder).

We are now starting to look at selling the flat and going our separate ways. If we were to sell the flat just now we would lose money (approx £8000) so my flatmate and I are considering renting out the flat until such times as we would be able to sell it for an amount we feel is acceptable.

It is my intention to buy another property (mortgaged) with my partner. He currently has a mortgage for his flat but would also like to rent that out due to its location.

What is the likelihood of my partner and I being approved for a mortgage to buy a property together (in addition to us both having mortgages on our own properties)?

Am I being completely unrealistic in the current climate?

(We are all employed with average salaries).

Thanks,

Stuart

kingstreet

That would depend on your chosen lender, rental income on the two lets, deposit on the new purchase, credit history etc.

You need to discuss this with a broker in real life. The number of variables make this very difficult to deal with all the "what ifs" and we could be upto ten pages and you still wouldn't know for definite.

dimbo61

So you are in Negative equity with the flat you own with your friend and will need " Consent to Let" from your existing lender in order to rent it out.
Your partner also has a mortgage and with out knowing the LTV and therefore equity in his property I do not know if he can only get " Consent to let" or change to a BTL ( Buy To Let) mortgage with say 25/30% equity!
Getting another mortgage while having the BTL,s in the background depends on income and deposit!

Thrugelmir

stu-b wrote: »

It is my intention to buy another property (mortgaged) with my partner. He currently has a mortgage for his flat but would also like to rent that out due to its location.

Crunch the numbers properly and fully.

stu-b

Yeah, too many variables going on. At the planning stage - lots to mull over.

Thanks for the responses in any case.

Annisele

If you can possibly afford to lose £8k, then I think the best option is probably to take that loss and sell up.

If you can't do that, you might want to consider having one of you buy the other out (that sort of transfer of equity may or may not be possible, depending on many variables).

If you can't do either of those things and go ahead with letting it, remember that means you'll be starting a business venture with your friend. You'll also be dependent on getting repeated consent to let from your lender. That could go very, very wrong.