To buy or not to buy?

Penny_Racer

The mortgage is in my husbands name as we have kept all of our debts in my name so that at least one of us is still credit worthy.
The mortgage is ready and in place.

moneysavinmonkey

hmm. hopefully someone will correct me but I think if you are married and living at the same address then any defaults (or bankruptcy) will affect your hubby's credit rating.

Catblue makes a good point. how are you going to finance the project??

Penny_Racer

I thought that too but everything is going through OK.

Catblue

This is getting murkier by the second.

Do you and your husband live together? Whose idea was it to put all the debts in your name?

His, by any chance? :rolleyes:

Does your husband currently have one residential mortgage (the family home, presumably) and one buy-to-let mortgage?

And does he intend on taking on another buy-to-let mortgage, using YOUR only assets as a down payment?

And with these properties to his name, there is no equity in any of them that can be used to help clear YOUR debts?

Penny_Racer

There is nothing "murky" about the situation! Its just complicated and you don't know all of the facts.

Yes, we live together.
It was my idea to put the debts in my name.
We don't have a residential mortgage because we live in MOD accommodation.
Yes, I do want to use my assets as a down payment.
And finally we wanted to use the equity in the property to pay off the debts.
And just to make it clear, this is all my idea, not my husbands, so please don't try and make out that he's some kind of conman with your funny faces. I am very lucky to have such a supportive husband.

moneysavinmonkey

eek - ignore conman comment, as they are not relevant in this case but as you say we don't know all the facts so giving advice on an internet forum is always going to be a stab in the dark...

from your comment 'relying on equity to pay off debts'

you have me worried now, so you're btl isn't going to be making a profit on the rent you are relying on HPI over and above the rate of interest on the money you have borrowed to get anything out of it???

I really don't think this is going to happen!

Catblue

Penny_Racer wrote: »

There is nothing "murky" about the situation! Its just complicated and you don't know all of the facts.

Yes, we live together.
It was my idea to put the debts in my name.
We don't have a residential mortgage because we live in MOD accommodation.
Yes, I do want to use my assets as a down payment.
And finally we wanted to use the equity in the property to pay off the debts.
And just to make it clear, this is all my idea, not my husbands, so please don't try and make out that he's some kind of conman with your funny faces. I am very lucky to have such a supportive husband.

Okay, I won't comment further on this thread.

Good luck.

Running_Horse

How much mortgage will you need after the deposit, and what is the likely monthly rental?

Penny_Racer

Appreciated, Thank you Cat Blue.

Penny_Racer

Need 137k mortgage. Rental income will be 560 -580 pcm.
I realise that the rent will not cover the mortgage repayments.
I was hoping that in 18months - 2 years there will be enough equity in the property to release and pay off my debts. Then we could keep the property as a future investment AND my debts would be paid.
Am I way off here?