First Mortgage but Partners Second - Help

Maisybaby

Hello,
As I've said in the title this is our situation and I didn't realise it was any potential problem. The other day my partner rang her bank and asked about us going for a mortgage and they said we would need a 20% deposit due to it being a second mortgage. No chance that is happening with the properties we have priced up.
I am a first time buyer, her home she basically took the mortgage off her family as it's a family home and they couldn't afford it. We had planned to sell this home a few months after we move in together when her parents move out.
Is this 20% deposit thing generally across the board due to her already having a mortgage?

csgohan4

This is a large reason why losing your FTB status to help family can have consequences in the future. 

I would recommend seeing a broker to assess your options as everything is based on affordability now, and now having 2 mortgages maybe an issue with some.  

Maisybaby

csgohan4 said:

This is a large reason why losing your FTB status to help family can have consequences in the future. 

I would recommend seeing a broker to assess your options as everything is based on affordability now, and now having 2 mortgages maybe an issue with some.  

Yeah I didn't realise that we wouldn't count as first time buyers together. Luckily I can still use my lisa for deposit as that only counts as me.

If the money works out though do you think it shouldn't be too bad for having 2 mortgages? Her mortgage isn't that much p/m. While working out our budgets and what mortgages we could actually afford it was still fairly decent. Do they take it all into account?

But yes I think we will have to get more advice and someone to help us.

[Deleted User]

Plenty will do it with 10% deposit. Some even 5%.   Just sound out a broker to sort it for you

Cscott139

Have you factored in the higher rate of stamp duty with this being classed as a second property for your partner?

Maisybaby

Cscott139 said:

Have you factored in the higher rate of stamp duty with this being classed as a second property for your partner?

See this is what I didn't realise either until just recently as I thought I'd get the FTB thing.
Are all mortgage brokers similar or anything? Looks like I'll definitely have to go this root haha

Cscott139

Maisybaby said:

Cscott139 said:

Have you factored in the higher rate of stamp duty with this being classed as a second property for your partner?

See this is what I didn't realise either until just recently as I thought I'd get the FTB thing.
Are all mortgage brokers similar or anything? Looks like I'll definitely have to go this root haha

You get good and bad in all professions. I would try speak to friends and family to see if they can recommend anyone from past experience. Make sure you get full costs upfront and don't pay a ridiculous fee, i would say £250 to £500 max is what they should be charging unless there is anything else that makes this case more complicated.