Remortgaging with partner added to mortgage- comments please.

raceagainsttime

Current situation-
Live in a house mortgaged solely to me, lived here 12 years. Mortgage outstanding £26000 for the next 5 years (on a fixed rate)
House is worth between £220-240,000. had it valued before Christmas.
My salary is £9600 plus child benefit of £1766. (2 dependent children)
My credit record is excellent.
Partner of 9 years, earns £25,000 with overtime of about £3,000 a year. Never had a mortgage before and a patchy credit rating.
Had a DRO in October 2010, also a DMP in 2014. We settled this a couple of months early ( should have finished in April) His credit score is now 527 if that has any relevance. All his previous credit arrangements are showing as settled or satisfied.

Plan-
Would like to add partner to my mortgage with a transfer of equity then remortgage using our joint earnings and use the money to buy a property to refurbish and sell on in the hope of making some money.
Online calculator (used my current lender's only) Show a possible extra £100,000 could be possible over 25 years this would be more than enough to dip our toes in the water.
Would try a broker though to find out what other options are available if any.
How feasible does obtaining this extra borrowing sound?
I am 44, partner is 48. would we have to declare what we want the borrowing for and would that go against us?
Would it be better to allow more time to pass and if so how long?
Any thoughts appreciated.

Thrugelmir

raceagainsttime wrote: »

use the money to buy a property to refurbish and sell on in the hope of making some money.

I wouldn't even suggest considering such a venture on the basis of hope alone. You'll be entering a highly competitive market where people undertake such ventures as their living. At the very least you need to crunch the numbers in the form of a business plan to assess the viability. With such a small mortgage you'd be better off overpaying and discharging it as soon as possible rather than incurring the costs of adding your partner to your existing one.

Number75

Your partner? So not even a husband?
So someone who has no current claim on your property - at least via divorce.

You have a property - your children's HOME - which is almost paid off, despite the fact you're a low earner (I'm guessing that position is via divorce from the children's father, though that's not a dig - I'm sure it is fairly and rightly so)

And now you're going to transfer some equity to a man who you're not even married to, who has a 'patchy credit history' including both DRO and DMP. Yes, sometimes life !!!!!! on us. And sometimes people don't learn from a DRO because it has acted as a get out of jail free card, and a few years later, there they are in a DMP.

So...

I think you need your head read!

Never EVER give away equity in your children's home to a boyfriend. 'Partner' means nothing - he's just your boyfriend.

As PP said, it needs a solid business plan not 'hope'.

Who is doing the theoretical property up? I'm guessing not you, and I'm guessing an ill thought out idea from your boyfriend.

If my reading of this is wrong, I'm sorry.

But please please please be very careful before you sign over a big chunk of probably your only major asset and your HOME, to a boyfriend.

ACG

You have assumed a lot there! I have been with my partner/girlfriend for 10 years, OUR house is in my name because at the time of buying I saved up all of the deposit. We now have a baby on the way and are buying a house in joint names. You could be right, but you should really ask rather than assume.

ACG

If you remortgage your home, presumably with a 5 year fixed rate there is a 5% ERC if you remortgage? I suppose on a £26k balance it is not the end of the world.

There are a few ways you can do what you are thinking of, it all comes down to preference and finding a lender to accept a DRO and DMP, but it is possible. Rates may not be so great however (it will depend on how everything appears on your partners credit report).

raceagainsttime

Thanks all for your input so far.
Thrugelmir, it would be more than a hope, yes! I'm just very risk averse and wouldn't like to assume that every project will result in a profit. The numbers side of things is something I'm researching now- things like CGT, stamp duty etc...

Number75- very sweet of you and I can totally see why you would be concerned. For what it's worth I've been with my partner for 9 years now. Got "married" in 2015 but not legally binding as I'm a Pagan. Would be happy to go down the town hall and have a chip supper if we needed to though, as well as making our wills just so everyone is protected. Of course relationships can and do break down regardless of how long they have been around for.
I'm in a low paying job (don't remind me) out of choice. Had a high paying job and hated every pointless minute of it!
We wouldn't be doing the work ourselves, no. We have some contacts who have done work on this house over the years that we would use.

ACG- You're right there is an ERC but it's all swings and roundabouts isn't it? i will arrange to have a chat with a broker. If we can't go ahead then that's fine. We could sell up and buy somewhere together in a year or two but I don't like the stress of moving, being in chains etc... and then you're committed to a longer mortgage term (not getting any younger) With no flexibility as all the eggs would be in one basket- even if it did have a bigger garden...
Congrats on the baby by the way.

Number75

I didn't assume it - I said in my post that I apologised if my reading of it was wrong.

I worked in a family law / legal related profession for some time and saw too many people bitten on the backside sharing equity with a partner that they came to regret. OP is free to ignore if not a concern, as she has.

*race* - I've been to a couple of chip supper weddings, I think they're the best! Mmmmm...