More than 1 mortgage?

l11lrn

hello!

Is it possible to have more than 1 mortgage?

I am named on my mum and her partner’s mortgage and this is causing major problems. Been tied to this since 2006. House purchased was £225k, Deposit (my mum’s money) was £50k & Mortgage taken out was £175k. I don’t actually pay anything to this mortgage; I haven’t for 6 years now since I moved out.

She has told me there are problems with her being able to take on a new mortgage, to cover this or to buy something smaller & cheaper, due to her & her partner being 58. Is there no way she would be able to get a mortgage because she is only 7 years off retirement age?

My husband and I currently rent after selling our home (his mortgage) and the plan was to do this until such times as I am free of the afore mentioned mortgage. He has a new business which means realistically he can’t get a mortgage just yet, but I am employed full time on a £27k salary. We would have a deposit of approx £40k. Is it likely that I would be able to get a mortgage for us to buy our own place whilst still on the other mortgage???

We really don’t want to rent for any longer than 2 years as then it would seem like we are wasting money. Hopefully 2 years down the line he would be able to get a mortgage but we want to do this together – we have never owned “our” own home together.

Any help/advice would be amazing!

HappyMJ

You'd have to sell the property and your mother find somewhere else to live. You aren't getting any rent for it and are jointly liable for the mortgage repayments even though you aren't paying towards it now it will affect your affordability for any new mortgage you get.

Jenniefour

Are you saying that your mother and her partner have applied/made enquiries with the lender to have the mortgage in their names only and been turned down? If so, that means that your name cannot be taken off the mortgage until it's paid off. As HappyMJ has said, the property would need to be sold in order to include your income when you and your husband apply for a mortgage to buy your own home. Regardless of who is actually paying the mortgage you are still liable for it anyway. Including the whole amount if your mother and her partner were unable to pay it.

Age itself is no bar to getting a mortgage. What's important is having sufficient funds so the mortgage is paid off in full when the mortgage term ends. These days that's usually retirement age. Your mother and her partner may be able to get a more modest mortgage if that helps with possible downsizing.

I am assuming that the mortgage is a repayment mortgage so some of the capital will have been repaid already, which would increase the equity. If it's interest only and no capital has been repaid then it's harder to see the benefit to anyone of keeping that property in the longer term. Unless one of you has 175k tucked away elsewhere to pay it off.

Jenniefour

OP, just seen your previous post on this. Messy. Your only alternative may be to force a sale through the courts if it can't be resolved any other way.

To answer your question - yes, in theory you can have more than one mortgage if you can afford it. But the present mortgage will be factored in when making a joint application with your husband. The fact that you don't contribute to any of the payments now is irrelevant from a lenders perspective. You could get a little more than a mortgage solely in your husbands name. It also might mean that they won't take any of your income into account at all.

Thrugelmir

Has anything changed since your previous post?

hostie

I think you have a good salary so there are a lot of options open to you. I agree that the situation is messy.

You can have more than one mortgage (I have several). Banks just want to know that you can afford to pay the mortgage back.

You are not paying the mortgage for the house that your mum is living in so the chances are that you could still get another mortgage. It would be worth speaking to a financial advisor as you have a good deposit and a good salary.

If there are any affordability issues, the best thing to do is change it to a buy to let mortgage. If you were to rent it out on a short term assured tenancy then the banks would see it as being self financing. Then you could use your own salary and deposit to buy a house with. You could even switch the buy to let mortgage interest only.

I don't think the banks would like the situation of you renting to your mum (may be wrong) as it is a bit messy. Maybe you could rent it to her partner (I think you mentioned she had one?).

Perhaps she could be convinced to move into a smaller rented place to allow you to rent your place out.

If this isn't viable, remortgage it with her in it and take as much cash as you can to put together with your 40k with a view to buying something else outright with the cash.

Jenniefour

hostie, take a look at OP's other thread on this. Your response is confusing and doesn't make sense.

nixxystupot

I had something similar. I changed my mortgage to permission to let so I could therefore get a mortgage with my partner.

kingstreet

Consent to let is not possible where the property is occupied by the borrower's parents.

Best case scenario, the new lender treats the old mortgage like a credit commitment and deducts the monthly payments from affordability for the new mortgage.