Joint borrower sole proprietor mortgages, opinions please

katymayo

I have been looking at joint borrower sole proprietor mortgages, can anyone off any advice on them? What are the financial implications for the joint borrower? Possibly looking at doing this with my brother, he is self employed with his own mortgage on his property. I need to borrow £150,000.....£120,000 left to pay on my mortgage plus the extra £30,000 to buy out my ex husband.
My mortgage company will only offer me £104,000 so feel like this is the last chance saloon! Any advice greatly appreciated!

foxy-stoat

Is he trying to avoid the second home stamp duty costs by not being on the deeds?  Speak to a broker for options, you may not have many.

katymayo

He just wants to help me out if he can but obviously he has his own family & commitments so I wouldn't want him to incur any extra costs by helping me.
If it's just a case of him putting his details & income on my application so I can pass the affordability criteria then happy days! If only life was this simple!

foxy-stoat

He will be jointly liable for the mortgage if he is on the deeds or not.  If this is your only plan to remove your ex husband then try your lender or broker for options.  You both will need to have an exist strategy though in the event your income is reduced and cannot pay the mortgage or if one of you dies.

Good luck

katymayo

Yes as I understand it he would be liable for the mortgage as well. My current lender will only do a joint mortgage where he would have to go on the deeds which neither of us wants. Ideally I'd like for my parents to go on the mortgage but at the ages of 66 don't thinks that's feasible.

Cscott139

Your brother wont go on the deeds although the new lender will factor in his current mortgage and outgoing when working out affordability. Typically he will have to get independent legal advice where they will go through the legal implications. Effectively he will be jointly responsible for the mortgage payments so if any are missed his credit will be affected. It will also impact on his own future plans as if he want to move, take out new credit etc this mortgage will be factored in. It is a big commitments so you both need to think about this very carefully.

MovingForwards

How much is the property worth? Is it enough to support the amount you want, less 10%+ 

Speak with a broker as joint mortgage, sole proprietor mortgages are probably the best way forward, but because your brother is self-employed lenders are being very cautious with mortgages for S/E people.

katymayo

House is worth £280,000 so plenty in it