What are my chances of getting a mortgage?

liontamer999

I have a complicated situation, which I have put below.

Looking to buy a house in Scotland, purchase price £555k, mortgage £400k, so just over 70% LTV. Mortgage would be just about 4.5x my salary
Currently own a house in England, worth £325k, mortgage of £85k, so net equity of £240k. Owned in joint names with my wife. Mortgage is a lifetime tracker, 0.15% over base rate
Own a flat worth £240k, mortgage free.

Wife is 10 years older than me, I am 40, she is 50, so getting a mortgage in joint names is difficult, given she will retire 10 years before I will. I think I may have to get a mortgage in my name only

Ideally I would like a 2 or 3year fixed rate interest only mortgage. Credit record is good. The house in England will not be sold before completion on the house in Scotland, and probably will not be sold for a while as I still need a roof over my head in England, as my job involves working in both England and Scotland. The interest only element will allow me time to find a job in Scotland rather than one that requires me to travel over the UK.

I am going to go and see a broker in the next couple of days but before I do, I would like to go armed with some info on my options.

What do you think, do I stand a chance of getting a mortgage on my ideal terms?

Thanks

mrginge

The one thing i do know is you aint getting an interest only mortgage for 400k without some pretty watertight repayment method in place.

liontamer999

Plan is to sell the house in england within the fixed rate period, which would reduce the mortgage on the Scottish property significantly. At the end of the fixed rate period, i would switch to a repayment only mortgage. The interest only element is only there to buy time to sell the property in England. On an affordability basis, I have tested things and based my figures on a 3% increase in interest rates, which would make things tight, but still manageable.

Thrugelmir

Interest only may well be a stumbling block.

Situations are only as complicated as people make them. This then has raises suspicions that there other untold factors behind the plan.

liontamer999

I wish the situation was simple. In an ideal world the property in England would be sold, and I would be looking for a £150k repayment mortgage, instead of a £400k interest only mortgage. The house in Scotland is our long term house, we could live in it for the next 30 years, so we really want it, its just a case of how we can fund it. There really is nothing else I am hiding, if that is the suggestion.

Can my situation be simplified? Am open to any suggestions.

liontamer999

Sorry, forgot to ask, are there any particular lenders that are are more flexible with this kind of application? I appreciate with the recent chnages that things have tightened up, but I hope I could find someone that would look at our overall situation

Thanks

Dave_Ham

Forget lenders, you need an experienced broker.

Potentially this can be pieced together, although you may have a small part of the new mortgage on a repayment basis with the bulk on interest only.

Engage an experienced broker to optimise the chances of achieving what you want.

Also the ongoing monthly commitments will be a consideration given the multiples, affordability etc. but lay out everything as is with a broker and let them package this for you.

Good luck

amnblog

Only when the broker fully understands your situation will the practical options become apparent.

Any views on here are guess work and irrelevant as potential courses of action as none of us will know enough to take an educated view.

Leave it to the broker.

liontamer999

Will speak to my broker tomorrow, and hopefully get some good news as to my options. Thanks to all that replied.

liontamer999

Broker came up with the goods, eventually! Went with London and Country, and now have a mortgage offer from Halifax, part repayment/part interest only, fixed rate for 2 years. It took a lot of work, but got there in the end. There is hope for everyone, if i managed to get it sorted.