Exiting joint mortgage and mortgaging solo - advise on how to do this.

Matchermike

Hi All, i'm hoping someone can point me in the right direction with some advice please.

I currently have a joint mortgage with my ex, who has now moved out so we are looking to settle up. Our house is valued at 400k and we have a 210k mortgage. I can't afford to pay her £95k equity and take on a £210k mortgage myself (i could afford mortgage, but not raise her equity share). So i'm resigned to  selling up and taking on solo mortgage for a new property.

Can anyone advise how best to work out what i can afford, and from where? Should i contact my current mortgage provider and explain the situation to them and get a figure from them? Or go to a new broker, or lender and explain and see what they offer? I'm hoping to sell within 6 months, so want to know what i can afford to buy, and start getting an idea of whats out there.

This is my first mortgage so i don't really know what i'm doing!

Thanks
Mike

Thrugelmir

Lenders have online calculators which will provide an indication of what you could potentially borrow. 

Suggest you contact a mortgage broker to guide you in finding the right product for you. 

MFWannabe

Matchermike said:

Hi All, i'm hoping someone can point me in the right direction with some advice please.

I currently have a joint mortgage with my ex, who has now moved out so we are looking to settle up. Our house is valued at 400k and we have a 210k mortgage. I can't afford to pay her £95k equity and take on a £210k mortgage myself (i could afford mortgage, but not raise her equity share). So i'm resigned to  selling up and taking on solo mortgage for a new property.

Can anyone advise how best to work out what i can afford, and from where? Should i contact my current mortgage provider and explain the situation to them and get a figure from them? Or go to a new broker, or lender and explain and see what they offer? I'm hoping to sell within 6 months, so want to know what i can afford to buy, and start getting an idea of whats out there.

This is my first mortgage so i don't really know what i'm doing!

Thanks
Mike

If you’re new to mortgages I would suggest use a broker, they will ‘hold your hand’ so to speak through the process 
As a rule of thumb you can normally borrow a max of 4.5 x salary (dependant on your personal circumstances) but borrow what you feel comfortable borrowing 
Value of property - £400k 
Outstanding mortgage - £210k 
Equity - £190k 
Dont forget you then need to deduct selling fees; solicitors fees etc out of this before you divide the remaining amount between the two of you 
Also is there any early repayment charge on your current mortgage? 

K_S

@Matchermike
To get a ballpark estimate of how much you can borrow -

- estimate 4-5x your income tops. The exact multiple will depend on the lender, LTV, your income etc

- play around with a couple of mainstream lender affordability calculators (search "<lender name> for intermediaries affordability calculator") to see what they throw up

- talk to a broker to get a realistic idea of how much you may be able to borrow.

Good luck!

getmore4less

How much can you afford a month. 

As said a 4.5 X will be a ball park starting point for what a lender will give you.