Mortgage with Parents - Now want to move out with wife

Jaybrown1

Hey guys and girls

I have a question regarding my mortgage situation and I am in a predicament about my next steps.

Currently I have a joint mortgage with my mum. Due to the value of the house and financial situations with my dad at that particular time; we decided to go for a mortgage in mine and my mums name, however, I dont pay a penny at all each month.

All went well, mortgage has been in place for around 2.5 years.

Now where things take a turn:

I have recently got married and would like to eventually move out of my parents home and get on the property ladder.

I am wondering what my options would be, as although I do not pay my current mortgage where I am named - i actually do on paper, as far as the bank is concerned.

From my own research i have thought of the below -

1) buy to let mortgage
2) trying to take my name off the mortgage but i dont want any hassle from the bank
3) second home mortgage

I was potentially looking at a buy to let mortgage, renting it out for a year and then moving into it, i know i will need to change the mortgage term should i go this route.

I would like to take my name off the mortgage as my mums salary will be able to pay the monthly payments etc but i would rather not have the hassle of providing income proof and more paper work etc

Is it possible to get a second home mortgage, will i not have to pay any capital gains tax etc when selling in years to come?

Any help would be much appreciated,

I guess what im asking is what is the best way to buy my 'own' house with my wife whilst currently having a mortgage on my name.

My current details:
Age:24
Current mortgage: £150k outstanding roughly £800 per month
Debt: no debt, no loans etc
Salary: take home each month is £2000
Deposit saved: £49000
Wifes salary: part time £750 per month
House: looking at house value of £120k

I look forward to your replies and help

Thanks in advanced

AnotherJoe

Jaybrown1 wrote: »

I would like to take my name off the mortgage as my mums salary will be able to pay the monthly payments etc but i would rather not have the hassle of providing income proof and more paper work etc

Considering that will save you about £4K in otherwise extra 3% SDLT on what would be your second house purchase, I suggest you go through that hassle.

getmore4less

I would like to take my name off the mortgage as my mums salary will be able to pay the monthly payments etc but i would rather not have the hassle of providing income proof and more paper work etc

You do that for the new debt not to get your name off the old one.

even if you did do it for your mum the paperwork involved to remove your interest now will be tiny compared to that needed for your other options.