Re-Financing Options ?

whunt18885

Hi

I have had some great feedback from people here recently so hopefully someone can help again. As per my last post I currently live with my girlfriend who has a apartment that she got a mortgage to buy 2 years ago. Its now worth 85-90k and it was purchased for 70k, Due to a healthy deposit there is only 56k left on her mortgage.

We want to buy a place together - We have a joint mortgage offer for a house we want to buy for 100k, We were agreed up to 160k so well within our affordability etc.

We did have a buyer for the apartment so he has since pulled out and we are struggling to get any more interest (it's thr right price and we are unwilling to decrease any more).

Given the above is there a way of re-mortgaging/re-financing the apartment with both our names and securing £100k to buy the place we like as cash buyers ? We would then just let out the apartment - We know that it would be let very quickly as its currently got full tenancy privately rented and notices on the communal notice board from interested parties who want to rent when something becomes available.

Again our TSB mortgage offer was approved straight away and we got a A2 credit score (it goes from A1 to D4 so we are nearly the best it can be) and TSB have all our financial info so they know we can afford 4x more than we are asking for in terms of monthly payments.

Is the above possible - Sorry to seem thick but I am not familiar with the process.

Foxy-Stoat_3

whunt18885 wrote: »

Given the above is there a way of re-mortgaging/re-financing the apartment with both our names and securing £100k to buy the place we like as cash buyers ?

No, there is only £34,000 equity in the flat in total, the most you would hope to get would be £16K, if the lender allowed a drawn down of equity release for this purpose.

kingstreet

If you want to be landlords, you could remortgage the flat onto a let to buy product upto 75% LTV, assuming the rental income is enough. Do a transfer of equity at the same time to put it into both names.

From the 75%, the existing mortgage would be repaid and anything left over could be used for the deposit of the new residential, topped-up with cash savings etc.

You then need a new residential from a lender willing to ignore the let property and mortgage in the background as self-financing so it doesn't affect the affordability for the residential.