Mortgage complications

salty_giant

Hi all,

I own a property outright worth approx £160k. My daugher currently lives there and pays rent to me monthly. she will move out next year, at which point I will sell it.
I have no income other than my rent as i'm just about to graduate from uni.
I currently live with my boyfriend in a rented house.
We wish to buy a new home together worth approx £170k.
He is on his ex partners mortgage but does not pay towards it.
He earns approx £34k pa.
My questions are:

1. Would we be able to take into account my property?
2. Is the fact that he is on his ex's mortgage a problem?
3. Would we be able to take a mortgage out longer term and interest free initially until I sell my other home and get settled into a job, then pay off the mortgage?

thank you

Contemptuous

1. You can use the sale proceeds as a deposit, if that's what you mean?

2. Not a problem if he can afford to service both mortgages.

3. No such thing as an interest free mortgage.

getmore4less

Deposit is the starting point.

Thrugelmir

Wait until your daughter is vacating the property then sell it to release the equity. Your current circumstances offer little possibilities.

Your partner is jointly and severally liable for the mortgage with his ex. Something which would impact his ability to borrow money against his income. Irrespective of the reasons behind him still being named on the mortgage.

amnblog

1. NO - it is more likely to be a problem
2. YES - he is liable for the whole thing
3. NO - interest only (not 'free') is not available to 99% of borrowers

Pixie5740

As long as your boyfriend has a joint account with his ex they will have a financial association. If you then get a joint mortgage with him then you'll end up being linked to him and therefore her as well.

It would be much tidier for him to get his ex to buy him out or agree to sell the property whilst you sell your own property.