Remortgage query?

lulu41_2

I want to remortgage my flat - my partner lives there - I dont - he does not pay rent I pay my mortgage and he pays his tc to cut long story cut short I live in his property with the kids and he lives in my small flat for sake of a healthy relationship

I want to remortgage my flat to get a better rate debt consolidation etc etc will the fact that I dont live at the flat cause a problem ie. all my legal docs show my actual address not the property that I own will this cause a problem?

homer_j_3

Yes, you will probably have to go down the buy to let route as you are not living there and someone else is.

lulu41_2

Thanks Homer for replying so swiftly - buy to let not a bad option is it? Looked at some rates and its way better than my current lender (Northern Rock)

herbiesjp

and some will offer free legal fees and free valaution as well

Make sure the rental income stacks up with the chosen lender

lulu41_2

Thanks Herbie - not sure what the rental income thing means ?

herbiesjp

If you are letting out the flat, the lender will need to make sure the rental income you recive on the flat is enough to cover the mortgage (and have a little left over as well)

lulu41_2

Oh I see - but I am not renting out the flat - my partner lives in it and there is no rental income - thanks for your advice

homer_j_3

Having thought about this further. Your situation is not the norm to a lender and therefore if you are not the norm you are likely to have to jump through a few hoops to get where you are wanting to be.

If I have understood your situation, you have basically property swapped and are taking care of your own mortgages and paying your own ways in the properties respectively?

So you do not charge each other rent. You may struggle on a buy to let if you say that you are not charging a rent. Unless you argue that you are not paying a rent either and a result of this is that you can maintain your mortgage on your income.

I would seek professional advice. It is something that you want to ensure is going to be done properly without loads of credit checks being done.

The reality is that you probably want a 2nd home mortgage or a BTL which you can support on income rather than rental income.

lulu41_2

The situation is rather strange from a legal point of view - bascislly where i live is the family home and my flat was supposed to be rented out but my partner likes a lot of time to himself so stays there 4 - 5 nights a week and I when I want to get away from the kids I have a bolt hole. But surely whoever I remortgage with would credit check me anyway wouldnt they ?

homer_j_3

When you put it that way, it would be classed as your 2nd home.

I thought that you both lived separately for 7 days a week but you can argue that its a 2nd home and that should not be a problem to sort. I did something similar for a client earlier this year with no issues whatsoever.

lulu41_2

Thanks Homer