Can I get another mortgage on my own?

ry314

Hi

Back in July 2014, I started a joint mortgage on a flat with my mother, under nationwide, and currently live there with her. It's 2 year fixed rate. I'm a first time buyer and my mother had a mortgage before, many moons ago, this is now her only one. I do contribute to costs but overall my parents are fine with keeping up with repayments + bills without me

My question is "could I buy another property on my own, with my own deposit and mortgage?" Will I have to exit my share on the house before anyone will realistically give me another mortgage? Am I breaking any terms here?

Advice much appreciated!
Ray

kingstreet

If you can demonstrate affordability for both, yes.

ry314

My parents are fine making the repayments without me, they have been doing so with little help from me so far. If the above can be proved (i.e. bank transfers demonstrating where the money is coming from?), would that be acceptable to prove affordability for another place myself? I am only on the mortgage instead of my father, as he'd only recently started work again, whereas I had 3 years continuous work history

Without the above, they must assumes I am making half the repayments when in reality, I am not? Or do mortgage providers not really care how the payments are made, and only look at total affordability of people on the deeds (i.e. just me and mum) if I decide I want another mortgage?

kingstreet

As you are jointly and severally liable for the whole mortgage and payment, some lenders will deduct the capital balance outstanding from your borrowing power.

In the best case scenario, a lender will treat the monthly mortgage payments like a credit commitment and deduct them from your income before working out your maximum loan.

Try a lender's affordability calculator, not Nationwide, entering the monthly mortgage payment as a loan/HP.

ry314

Thanks kingstreet, I guess that gives me some room to look at my options, although limited but useful to know

If I find I can afford another place using the calculators with current mortgage payments down as a loan, then I'll give that option some serious consideration. But otherwise it's looking like I ought to stay on until the 2 year fixed period is over, before exiting the mortgage (I guess that's a whole different topic on exiting mortgages early!)

kingstreet

Yes. Those remaining on the mortgage will have to demonstrate they can afford it, otherwise the transfer of equity won't be permitted.