Raising mortgage on property owned in unequal shares

Samrebma

Hello

I currently own a property with my sister as tenants in common with a 50/50 split. I am looking to raise a buy to let mortgage against the property for approx. £39,500 to give my sister in order to change the split to 66/33. The property is valued at £235,000. This is a second home for us both as we inherited the property some time ago.

I am experiencing difficulties in finding a mortgage as the lender I have spoken to has refused on the basis that they are not happy to provide a joint mortgage on 50/50 basis when the ownership if the house is different. There must be others obtaining a mortgage out there that don't own equal shares? Is the problem just with this fussy lender?

I want to do everything correctly and above board in order that it is all registered correctly to avoid any potential comebacks later on.

Any help or advice on this would be really appreciated

Thanks

Annisele

In principle there's no problem with joint owners raising a joint mortgage (so long as both parties are named on the mortgage and equally liable for it).

I wonder if the problem is the purpose of the capital raising? Many lenders are happy to lend so one owner can buy out the other, but a partial buy out is more unusual.

Probably a good idea to run this by a mortgage broker.