Shared mortgage

jamesmc11

Hi,

3 years ago me and one of my mates got a joint mortgage on a house. The house is valued at 90k and we owe 70k on the mortgage. I want to move out and get my own mortgage on a new house but keep my current house.

My housemate will either move out too or stay in the house and cover my mortgage payment (as it would be more if we rented it out)

What will I need to do?

I earn about 37k and I have about 15k in debt that is well managed I.e the minimum payment and the 2 cards is 280 and I'm paying 500-750 off them.

I have a deposit of 5k and the new house asking price is 65k.

Thanks for your help

AnotherJoe

You do not have a deposit of £5k. You have no deposit, owe £10k and already have a mortgage so you'll be liable for additional stamp duty on a second house and even before yesterday's announcement of tightening up on BTL, I don't think anyone would lend you money for a second mortgage.

Trying_to_be_good

You'll need to sell the first house (or concert to BTL and rent it out, if the numbers stack up), then consider the second house, probably after clearing your debts - it'll take a bit of time, so i wouldn't set your heart on a new place yet.

ACG

From anaffordability point of view it probably does stack up.
I would probably try and up your deposit to 10% (£6,500) as you will not have access to help to buy on the new property which takes out a lot of lenders who use HTB to do 95% mortgages.

A couple of issues to overcome (biggest being you are purchasing a property which is valued at less than your current, lenders may be concerned it is a BTL and also you will own 2 residential properties) but I am sure it will be possible. One for a broker I think as this will not be for every lender.

jamesmc11

Thanks for all your replies