Second property mortgage dilemma
riyaz_7
Posts: 15 Forumite
Hi
I am a little bit confused and unsure of my options and looking for a bit of guidance please.
I am married and have a property of my own. This did have a mortgage which we have cleared in the last couple of weeks, Not sure if this will need time to update on credit file.
My wife is a first time buyer but she has one blot on her credit file. A default on car finance (2k) which was registered in Sept 2013 and satisfied in July 2015. Other than this blot her credit file is perfect.
We would like to purchase a property together and keep the property I own and rent it out. We have a 30k deposit and I earn 21k per anum and she earns 16k per anum. We have been looking at properties in the price range of 160k so 130k mortgage. Are we living in dreamland to get a mortgage of 130k?
Would it be better to apply for the mortgage in my name alone or joint with my wife? How big an impact does a default have? Is this a broker only situation?
If we got the new house in my wife's name, would we still need to pay the higher rate stamp duty?
Apologies for so many questions.
I am a little bit confused and unsure of my options and looking for a bit of guidance please.
I am married and have a property of my own. This did have a mortgage which we have cleared in the last couple of weeks, Not sure if this will need time to update on credit file.
My wife is a first time buyer but she has one blot on her credit file. A default on car finance (2k) which was registered in Sept 2013 and satisfied in July 2015. Other than this blot her credit file is perfect.
We would like to purchase a property together and keep the property I own and rent it out. We have a 30k deposit and I earn 21k per anum and she earns 16k per anum. We have been looking at properties in the price range of 160k so 130k mortgage. Are we living in dreamland to get a mortgage of 130k?
Would it be better to apply for the mortgage in my name alone or joint with my wife? How big an impact does a default have? Is this a broker only situation?
If we got the new house in my wife's name, would we still need to pay the higher rate stamp duty?
Apologies for so many questions.
0
Comments
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Sorry can't comment on mortgage situation but can confirm that as you are married you will be liable for the second home stamp duty surcharge. You don't have to pay it if not married but I was told you can't get out of it if married.0
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You will need both incomes to make affordability on the new purchase.
You will have to pay the higher rate stamp duty land tax whomever is the purchaser(s).
One for a Broker.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Thank you for the responses. Sorry a few more questions...
Would it be better to wait until my credit file updates? I have a letter of completion but dont think it has updated on credit file.
Are there any brokers you would recommend? Any local to Leeds area? Would a mortgage broker charge a fee? L&C any good?
Does the default mean a much higher interest rate?
We have not seen a property yet we both like, how long would the mortgage offer last?0 -
Any thoughts or personal experience on using L&C?0
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