Mortgage advice

danimcg85

I am hoping someone can help, me and my partner are currently saving to apply for a mortgage later in the year. It will be solely in his name as he has an excellent credit rating and a good job whereas I'm a student with student debts. The issue is he owns a flat with his ex. The flat is being lived in by a friend and the rent covers the mortgage although the mortgage is not a buy to let mortgage. We have been told by a mortgage adviser this will not affect the amount my partner can borrow as it is being paid for but I'm not convinced this is correct. To sell the flat we would need to put a few thousand towards the mortgage to pay it off but if it doesn't affect the mortgage borrowing amount he can get we may as well put this towards a deposit and sell the flat once the value balances with the mortgage.
Thanks!

kingstreet

As long as the new lender considers the let property/mortgage as self-financing it won't affect affordability for the purchase.

Each lender has its own definition of self-financing, so I always use rent must be at least 125% of monthly mortgage interest assuming 6% per annum as that's about the worst.

Take care with new lender selection. Some want a higher deposit for what will be his second property - Nationwide, for example is 15% minimum.