Looking to remortgage property I own with brother after he bought another property

KingofWandsworth

My brother and I are having difficulty finding a mortgage renewal that will fit our current situation. The situation is this; we bought a flat together just over 6 years ago and my brother has recently (last month) bought another property with his girlfriend. We talked to a broker (who has gone quiet on us) and he said that the problem that we have is that my brother can’t have two residential mortgages and if we change the flat to a buy to let mortgage I can’t have that as my residential address. We thought about changing my address to my parents but another broker said that if we get caught we could face 5 prison time (I'm too pretty to go to jail...) and suggested we do a 'deed of trust'.

Has anyone been through this before or have any advice?

Foxy-Stoat_3

I think you need to divulge some more information.

The mortgage renewal you speak of, you mean new mortgage with another lender?

Whats wrong with speaking to your current lender for a mortgage retention product?

Who is living in the flat, you or your brother?

KingofWandsworth

Thanks for getting back to me. I'm living in the flat, we have come to the end of our two year period with our current mortgage so the rate goes up next month which is why we are looking for a new deal.

You're right we haven't actually spoken to our current lender, the conversation with the broker started when my brother was buying his new property he gave us the impression that it was quite an awkward situation but we didn't really want to talk to the banks as we thought we might have to do a 'back door' type deal. Do you know what our options are?

Foxy-Stoat_3

KingofWandsworth wrote: »

Do you know what our options are?

Speak to your current lender for one of their customer retention products. What was your rate and what is the new SVR?

The broker is trying to make you take out a new mortgage with them as speaking to your current lender earns them nothing.

amnblog

You can have two residential mortgages.

It sounds like your brother already has two residential mortgages.

betmunch

Dont see the problem with two residential mortgages at all.

You should be glad this brokers gone quiet on you. Dont chase him up, get someone that knows what thet are doing on the case

velocity_girl

Agree with others that say no problem with two residential mortgages. My boyfriend is in this exact situation - he has a mortgage on a property he owns with his brother (who lives there) which they used to live in together, and a mortgage on the property we now own/live in together. Not an issue for either lender (Skipton and Nationwide).

Thrugelmir

If you've owned the property 6 years. Then remortgaging to a different lender may well expose you and your brother to a tougher lending regime than previously. Affordability for both mortgages will be the test for your brother. As that's what he's liable for.

amnblog

Thrugelmir wrote: »

Affordability for both mortgages will be the test for your brother. As that's what he's liable for.

One step at a time.

The initial key point is that the OP has been misinformed that she and her brother are committing some kind of fraud already through his having two residential mortgages.