Second mortgage whilst keeping first

Jayjayokocha

Hello everyone

My situation is this, I currently have a mortgage with 3 (dad, mum, sister) other people on the property we currently live in, it is a very big house. I recently got married and my wife and I are looking to move to our own place and let the parents stay in this property until retirement. Sister has already moved out.

The mortgage on the current property is around £170K and my father pays for the monthly amount around 800pm and I pay for the utilities etc. around 400pm.

When I push in the figures into mortgage calculators there is usually a field to enter other monthly loan amounts, where when I put in 1200 (800+400) and all incomes etc. I get a figure for how much they are willing to lend. My wife and I have a combined salary that should cope with another mortgage, as per the calculators (and I know they are for guidance only).

I know about the higher SDLT, so please don't remind me, it hurts!

It would be only my wife and I on the new mortgage. All 5 credit histories are excellent.

So my questions are these:

1. How will a lender look at my current mortgage debt, even though I do not pay for it?

2. Do they take me as responsible for all the debt or 25% of it?

3. Do they apportion the whole £800pm to me or work it out a different way?

4. Do the credit histories of others linked to you financially matter for the new mortgage, and I don't mean my wife, I mean the family members I have the current mortgage with but will not have anything to do with the new mortgage?

Many thanks!

ACG

1) Varies from lender to lender, but I think if you are keying in £1200 and it still fits affordability you should be fine.

2) No, you are jointly liable for 100%.

3) As per number 1, it will vary from lender to lender. Some will ignore it as you are not paying, some will take your portion, others what you are actually paying and others the full amount.

4) Anyone you are financially associated with can/may impact on your own credit file.