Advice re possibility of Mortgage

Loft_Boy

Hi

My self and my partner are getting married later this year and next year we have decided to purchase our first home together, my other half is currently on Maternity leave which end in November of this year hence waiting until next year to start looking once she goes back to work

She owns a Flat that she bought around 5 years ago with a friend of hers, her friend now lives in the flat with her other half. The flat is valued at approx £200k and has an outstanding mortgage of around £152k left.

I earn £47,500 p/a and my other half earns £37,500 but this may drop to £22,500 if work agree to her going part time as she hopes to do.

There is nothing too bad in the background in terms of Credit (used a PDL around 4 years ago and I think she had one late payment due to a bank mix up around the same time)

My question is how much could we realistically borrow with a joint income of £70k bearing in mind her currently having a mortgage with her friend?

We have a deposit of around £30k

Any advice would be really appreciated

Many thanks
LB

ACG

Theoretically it could be as low as £130k as your partner is jointly liable for the whole of the other mortgage.

There may be lenders who would ignore it to some extent but it will be dependent on the circumstances. Im assuming your wife coming off that mortgage is not an option?

Loft_Boy

Thanks for the reply . Too be honest I don't think she will, goes on about it a nest egg for the future seeing as it is in a nice area, and she isn't paying it.

amnblog

She needs to get out of that arrangement with her friend.

It will end in tears.

Jenniefour

Agree with amnblog. Wanting it to be a future nest egg, good area etc. may not be good enough reasons to keep this arrangement - particularly if it turns out to be an obstacle too far to buying your home together.

The real nest egg might be selling that property, or the friend now buying out your partner. Then you would have a bigger deposit and her earnings can be taken into account when you're applying for a mortgage. As it stands the mortgage payments for the flat will be taken into account in any event, and regardless of the fact that your partner doesn't actually pay it at present.The mortgage lenders would be building that into their calculations because they know your partner might have to pick up the entire mortgage payment in future - however unlikely your partner believes that to be. As per the point ACG made. It will limit significantly what you would be offered.

amnblog

When your partners friends finds her partner in bed with his friend she will go into meltdown.

Who is going to preserve your Partners credit file when her friend stops paying the mortgage.

Friends who buy together should always sell when one moves out or one should buy out the other.