advice on my brothers mortgage please

ross1985

hi well i will try and keep this short, my brother got a mortgage with hs wife about 8 years ago they have recently split up, she is still living in the house, they have a interest only mortgage but have paid a bt extra about 10k well she has off to buy him out of the mortgage giving him 5k. but my brother has spoen to me tonight coz i have savings would i be interested in buying her out of the mortgage and taking it over with my brother i dont own my own place so i thought it would be a good idea but thinking about it i dont think it sounds that good i know he said we could over pay on the mortgage but i dont want to end up after the mortgage ends in 17 years not having much money in the house and cant efford anything else. so my question is would it be a good idea my brother and me take it over or let his ex wife buy him out. i hope i have explained it ok.

Kittycat1981

If its interest only - what are the plans to pay the capital back? You could pay the interest only for the next 17 years and still have to pay the initial full price for the house.

I would stay well out of it and let your brother and his ex mrs sort it out.

Mortgage_Mark_2

It's not as simple as 'taking over' the mortgage - you need to apply for a joint mortgage with your brother. This will involve a 'Transfer of Equity' from the ex to you, and potential fees (legal, possibly SDLT).

Have you checked that you would be able to get the mortgage in joint names? If not, this idea is a non-starter anyway.

Also - for a new mortgage application, I'd forget interest only. It's incredibly unlikely that you'd meet a lender's criteria for an interest only residential mortgage now.

csgohan4

Money and family/relatives should never mix. Stay out of it, it will only end sour for you.


You will not be able to buy a house a First time buyer if you enter into an agreement with your brother. You will be tied down for a long long time on an interest only mortgage and you will have to pay it in full when the time comes.


Stay well clear for your sake and your own family

lonestarfan

csgohan4 wrote: »

Money and family/relatives should never mix. Stay out of it, it will only end sour for you.


You will not be able to buy a house a First time buyer if you enter into an agreement with your brother. You will be tied down for a long long time on an interest only mortgage and you will have to pay it in full when the time comes.


Stay well clear for your sake and your own family

I agree money/relatives don't mix well.
You won't be tied to to interest only because you won't be granted an interest only mortgage in the first place.
So your mortgage payments will be higher as they'll be repayment but there'll be two of you to share it.
You will not be able to move on with your life when you want to because you'll be named on this mortgage. So when you meet someone and want to get a joint mortgage with them you'll have difficulties unless you really earn a lot of money to support both mortgages. There's lots of posts for you to read on this board where they're asking for advice how to get another mortgage and get their name off an existing one with their brother sister ex husband etc and finding its not easy.