Mortgage application

rutar1

My partner and I are looking to acquire a property (inc fees) for £500k.
Deposit = 100k
Mortgage = 400k (we are thinking interest-only)
Or joint income is 100k (Mine = 65k, partner = 35k). We both have v decent credit ratings (according to Experian)
I own an investment property with my mother (my share = one-third) with a market value of 475k and an outstanding mortgage of 30k. My mother has agreed that we can re-mortgage a reasonable amount to fund the above purchase. (Ownership structure remains the same)
Your advice regarding both the feasibility and the best approach is much appreciated


Thank you

Pixie5740

Is it another investment property you are looking to buy or a home?

Caz3121

Is the deposit coming from the released equity from the investment property? why interest only for the mortgage? do you have something in place already to repay the capital?

amnblog

You wont get interest only unless it is an investment property you are seeking.


Other than that, you shouldn't need to take equity out of the property you own with your mother if you choose not to.

rutar1

Hi all, thank you for your speedy responses.
To clarify, The home is a residential property.


I was thinking of interest only to lower the monthly repayments (for a little while anyhow) but if we need to pay on a repayment basis that's fine also..


So a few questions:
Will my partner and I be able to get the mortgage without re-mortgaging the investment property?
What if my partner chooses not to work for a while, what would be the max. mortgage I could get then?
If I do re-mortgage the investment property, is there an issue that I am re-mortgaging a property co-owned by my mother and I to fund the purchase of a property owned by my partner and I?


Thank you

Caz3121

rutar1 wrote: »

Will my partner and I be able to get the mortgage without re-mortgaging the investment property?
how much deposit do you have if you do not mortgage the investment property (it was not clear whether you had £100k deposit plus the equity or whether it was one and the same)

What if my partner chooses not to work for a while, what would be the max. mortgage I could get then?
You can use some of the lenders calculators to see what they would lend on your income alone however affordability will come into it to as your income would be supporting both of you

If I do re-mortgage the investment property, is there an issue that I am re-mortgaging a property co-owned by my mother and I to fund the purchase of a property owned by my partner and I?
You would both be named on the mortgage (even if you were the only one paying it)

£400k mortgage on your income alone would be more than 6 x salary so is unlikely to be an option

amnblog

rutar1 wrote: »

Will my partner and I be able to get the mortgage without re-mortgaging the investment property?

Yes

rutar1 wrote: »

What if my partner chooses not to work for a while, what would be the max. mortgage I could get then?

About £300K

rutar1 wrote: »

If I do re-mortgage the investment property, is there an issue that I am re-mortgaging a property co-owned by my mother and I to fund the purchase of a property owned by my partner and I?

Not particularly - but use a broker as there can be some complications

rutar1

To answer the query above, £100k deposit plus the equity. Thanks