Buying with a non-first time buyer as a first time buyer!

ashermaann

So this one is going to get complicated, but thoughts appreciated!

I am a first time buyer, saving nicely in a LISA. My girlfriend, has a shared ownership house, for which her mortgage is around 73k remaining (originally 82k (8k deposit plus payments so far). We would like to one day soon buy a house together. Average house price in my area is around 250k.

How on earth do we buy a house together if she already has a mortgage, and I don’t? I’ve heard about porting a mortgage, whereby I assume she would have a mortgage of 73k still, and together we borrow the rest. But would she get her 8k back when she sells up, so that we could use that as a deposit for the mortgage of approx 177k (259k-73k current mortgage)? Obviously 95LTV mortgages are out of the question, so assuming we had 10% of 177k, would that suffice? 

Are there any better ways of doing this? Does anyone have any experience with this?

If anyone is able to explain how all this works, would be really appreciated! Sorry if majorly confusing!!

Ash

Alter_ego

If you buy jointly with her you are no longer FTB
Best for her to sell the shared ownership first (difficult) She will get back any surplus after paying off mortgage and solicitor/agent/etc charges.

ashermaann

@Alter_ego understood. The issue of porting etc still remains! 

julicorn

In most cases, your girlfriend would sell the house she currently owns. The proceeds of the sale pay off the mortgage she already has, with the 'leftover' becoming part of your joint deposit for the new house. 

Bex_27

If you wanted to buy before March 2021 you’d be ok but unfortunately it changes from then and you can’t buy together and get the help to buy loan after then. My partner isn’t a FTB but I am, so we are hoping to get everything completed before then. We are in the process of buying atm. Good luck!