Named on two mortgages?

Matthew_Wharton

Hi all

I am separated from my wife and soon to be divorced. I will be receiving a financial settlement in the next 1-2 months which will enable me to put a deposit down on my own home and get my own mortgage.

My soon to be ex-wife won't be in a position to take me off the current mortgage (various reasons! - i'm working on this!) but I am worried that this may impede my plans to get my own mortgage under my own name whilst still named on that one.

I am aware that if my name is left on the mortgage that I am liable for it however I know 100% that this won't come back to haunt me as things are amicable. I know that things can change but I trust that this will not be the case.

What I need to know is if I am still "named" on another mortgage, even though I won't be paying a contribution (bank statements will prove this), can I still get my own mortgage? Perhaps this could be dependent on the lender etc, I am unsure.

I need to know this as it will severely effect the future as in where I will live, I don't want to rent until she takes me off the mortgage as this could take months!

Thank you

Matthew

molerat

If you are on the mortgage it can always come back and bite you on the bum ! There are many things that can go wrong and fall back onto your liability to pay. To get a another mortgage you will need to speak to a specialist broker unless you have an income high enough to cover both mortgages, the high street lenders will most likely give a computer says no answer.

kingstreet

Matthew_Wharton wrote: »

What I need to know is if I am still "named" on another mortgage, even though I won't be paying a contribution (bank statements will prove this), can I still get my own mortgage? Perhaps this could be dependent on the lender etc, I am unsure.

Yes, but your borrowing power will be reduced.

mrginge

Presumably you are also named on the deeds for the current property.
If so have you factored the additional stamp duty into your future plans?

sevenhills

Matthew_Wharton wrote: »

Hi all

I am separated from my wife and soon to be divorced. I will be receiving a financial settlement in the next 1-2 months which will enable me to put a deposit down on my own home and get my own mortgage.

If you are named on the mortgage, surely that means you will have positive equity in the house?
Worth a try

amnblog

Your affordability will be limited by this situation and you will incur an additional 3% stamp duty bill on your purchase.

Matthew_Wharton

mrginge wrote: »

Presumably you are also named on the deeds for the current property.
If so have you factored the additional stamp duty into your future plans?

Hi - yes I am, the wife mentioned this however I'm not too sure how this effects things.

Matthew_Wharton

amnblog wrote: »

Your affordability will be limited by this situation and you will incur an additional 3% stamp duty bill on your purchase.

Hi - thank you for your reply. The value of property I am looking to get a mortgage for is within the 2% Rate of Stamp Duty (£125,001 - £250,000) and the house I am currently named on falls within this bracket too.

Do you mean that the purchase of my NEW house will incur the 3% stamp duty fee *PLUS* a 3% penalty on top of this against the property I am currently living in, therefore a 6% fee? and if so how is the additional 3% calculated? I have had the house valued 3 times, would the 3% be based on the average price? Sorry I may have got all this wrong and confusing myself.

Neutrinno

Matthew_Wharton wrote: »

Hi - thank you for your reply. The value of property I am looking to get a mortgage for is within the 2% Rate of Stamp Duty (£125,001 - £250,000) and the house I am currently named on falls within this bracket too.

Do you mean that the purchase of my NEW house will incur the 3% stamp duty fee *PLUS* a 3% penalty on top of this against the property I am currently living in, therefore a 6% fee? and if so how is the additional 3% calculated? I have had the house valued 3 times, would the 3% be based on the average price? Sorry I may have got all this wrong and confusing myself.

The 3% is additional on each 'tax bracket' and is based on the purchase price.

E.g.: You are purchasing for £150,000. Usually you would be liable for £500 stamp duty which would work out to be 0% up to £125,000 (£0) and then 2% on £25,000 (£500).

With the additional 3% you will be paying 3% on the £125,000 (£3,750) and then 5% on the £25,000 (£1,250), so in total your new bill would be £5,000 with the additional 3% stamp duty.