Best Mortgage to Buy Out Share of House

AuntyJean

I am currently living with my partner (have been for 8 years) and jointly own a property outright worth £130,000+ where my husband lives.

For those of you who have seen previous posts by me you will know that I was considering selling up the marital home or getting a BTL mortgage on it.

Things have now changed and my partner & I are splitting up so I need to move into the marital home.

I am trying to get a mortgage in my name only for the marital home so that I can pay off hubby and, have a bit to 'do up' the house (it's in a mess). I have worked out that I need a mortgage for £75,000. I only have 15 working years left until retirement.

However, to complicate matters, the house my current partner owns has a fixed, interest only mortgage against it for £30,000 (fixed until March 2007). We used this to buy a holiday chalet in Cornwall which is currently worth about £48,000 but, to sell now would incur penalties and although it runs at a slight loss (Bills around £3,000 pa, income around £2,500 excluding mortgage) I prefer to keep up the payments until April 07 (my daughter, son-in-law & grandsons love the plave plus it is a free holiday for us twice a year).

THIS IS THE MAIN BIT.
I am told by my financial advisor (who works for a sister company that I work for) that the best he can do on my salary is 4.84% with Abbey National. This is because the lenders all take into consideration the TOTAL amount of the joint mortgage on the house where my current partner lives because I would be liable if he does a bunk! (Fortunately the house was changed over to joint names (joint tenants) when we did this remortgage and the holiday cottage is Tenant in Common so we each own half).

They also insist on me taking out their buildings insurance (at present I get a very favourable rate of £215.05 for £200,000 sum insured buildings and £40,000 contents) per annum but their insurance is £300+ (B&C). Their fees are reasonable at £659.00 plus I will have to pay the legal fees. After the initial period (5yrs) there are no penalties.

I feel like that woman in the advert that takes a step backwards! Especially when I see how low the other rates are! Every penny is going to count if I am going to buy out my own home. More importantly, after the initial 5 years is up I intend to use the balance from the sale of the holiday cottage (which I will invest between April 07 and the end of the intitial term of the new mortgage) plus an ISA I have going @ £155 pm to offset against a replacement mortgage with repayment of capital so that I actually own my home after the end of 15 yrs.

I plan to keep the other mortgage going until the end of the initial term (until April 07) because I will then sell the property we bought and split the difference, investing my share until the 'new' mortgage initial term expires.

So in all, the lender is going to look at a mortgage of £105,000 even though I am only borrowing £75,000. Without giving away my salary can anyone advise a better deal?