Does this sound sensible/possible?

MrBitey

Hi all. I wanted to run my situation past you to see if it sounds like a go-er (and to see if you might flag up any problems).

So...

My wife and I live in a small house on which the mortgage is paid (she paid two thirds as she had it before I met her and I paid one third.)

For various reasons we are now splitting up (amicably) and I am moving out.

She has given me back my money plus a bit of interest.
I have been flat hunting and found the perfect place.
I have 45% of the value in a deposit.

In order to secure the (seemingly very popular) flat, I have offered to pay the asking price in cash (my wife will lend me the restuntil I get a mortgage through).

So, if they accept my offer, I will need to get a mortgage straight away to pay my wife back (as she needsa bit to do some roof repairs on our (now her) house.

So how should I go about sorting the mortgage? Exchange/complete and the remortgage straight away? Some other way?

The slightly confounding factor is that I have been on relatively low pay for the last 2 years (I am a cover teacher/IT tech) and that this work has been all on fixed-term contracts.
I have two fixed-term contracts lined up for next year which will amount to £21,000 . This should allow me to take a mortgage out for £105,000 (5x salary) which will pay my wife off. On top of this there will be variable cover work which I will claim for on a day-to-day basis.

So, do you think I will be ok get a mortgage to pay her back swiftly?

The other possible route is to not pay her back straight away and sign a contract with her where she owns a 55% share and I pay her back later on or if I move (at 55% of the market value then) whilst also paying her some 'rent' on her part of the flat...


I would be grateful for any advice/pointers/assurances/help from anyone who has managed to read this far!

Thanks very much in advance...

MrB

libf

You're unlikely to be able to get a mortgage until you've owned the property for at least 6 months, and unlikely to be able to get more than 4.5x your salary.

MrBitey

Ok thanks for that, lib.

The mortgage advisor (L&C) reckon I will be ok to have 5x...
The 6 month wait could be an issue though. Thanks for that.

libf wrote: »

You're unlikely to be able to get a mortgage until you've owned the property for at least 6 months, and unlikely to be able to get more than 4.5x your salary.

Senior_Paper_Monitor

If you have engaged a mortgage adviser and provided them the supporting documents/information enabling them to give advice why on earth are you asking a random bunch of contributors (who have buggah all relevant info available) on a public internet forum whether you can:


1) Borrow £X


2) Re-mortgage day 1




I'd certainly be uncomfortable with this one by the way (contractor track record, pension deductions, forecast earnings and many other factors) !!

MrBitey

Thanks SPM. To be honest, the chap at L&C was just advising me about the possible mortgages I would be able to get. I didn't show him any docs yet. We also didn't discuss remortgaging (the whole cashoffer/loan plan came up over the weekend as the flat I viewed was basically perfect). So, I am asking here to find out what folks think and will try to chat with the broker when I get a mo on Monday (don't get much chance to talk on the phone as I am in class).

Senior_Paper_Monitor

I don't know a single broker who doesn't work evenings and weekends (but can't speak for L&C) !


If the L&C guy has received just the general info you gave here and has suggested you will achieve 5x he is either very over confident, very good or very brave !!

sam2015_2

Your wife could have the share and complete the purchase. Then later on when your salary goes up you could buy her share. You will have time to shop around for mortgage then.
Not sure about the time implication and stamp duty. Better check those first.