Second purchase: residential mortgage on houses 1+2?

[richiedc]

Hi.

I locked in a residential mortgage for 10 years fixed in london (RBS)in 2007. Ive since moved out and found the love of my life (:)) and we wish to buy a house together in a year or so in cardiff. My friend still lives in the London house he part owns with me.

Now we have enough money for a normal residential mortgage deposit but cant afford deposits for a buy to let. As I no longer live in my other house and indeed let my old room is it possible to have a consent to let and still get a residential mortgage in cardiff.

I envisage this being far more complicated than I have described so if someone can advise much appreciated.... So In a nutshell

"How can I get a residential mortgage on a new home when I have moved out of the property of a shared residential mortgage but the other partner still lives there"?

[jeffrey]

Joint residence may not be necesary. Only the joint owners/mortgagors can mortgage; but the mortgagee might accept residence by one only.

[silvercar]

On your London property you have a joint liability for the mortgage.

The fact that you don't live there is not that relevant as it is still the residence of one of the borrowers. Don't think in terms of consent to let on this one - that is a phrase that is used when a full tenancy is offered to a third party. The status of the person in your room is more akin to a lodger of your co-mortgage holder.

You are jointly liable for the rent, buying as friends I guess you have an agreement to pay half each. In applying for a mortgage for the Cardiff home you will need to declare the liability for the London place but state that a lodger is paying rent that covers your obligation and your co- mortgage holder is happy with it. No reason why you then can't be considered for a mortgage in Cardiff, though the lender will want to be satisfied that you can afford the payments and will look at your London liability. A mortgage broker will know which lenders will look favourably at this.

When you look at what happens when couples split up, the partner moving out of the mortgaged property should be paying half the mortgage but the partner staying put should be paying half the market rent to the person moved out. One gets knocked of the other with a payment for the difference.

One option is to sell the London place, or for your co-mortgage holder to buy you out (called transfer of equity in mortgage-speak).

[BTLMortgages]

On your London property you have a joint liability for the mortgage.

The fact that you don't live there is not that relevant as it is still the residence of one of the borrowers. Don't think in terms of consent to let on this one - that is a phrase that is used when a full tenancy is offered to a third party. The status of the person in your room is more akin to a lodger of your co-mortgage holder.

You are jointly liable for the rent, buying as friends I guess you have an agreement to pay half each. In applying for a mortgage for the Cardiff home you will need to declare the liability for the London place but state that a lodger is paying rent that covers your obligation and your co- mortgage holder is happy with it. No reason why you then can't be considered for a mortgage in Cardiff, though the lender will want to be satisfied that you can afford the payments and will look at your London liability. A mortgage broker will know which lenders will look favourably at this.

When you look at what happens when couples split up, the partner moving out of the mortgaged property should be paying half the mortgage but the partner staying put should be paying half the market rent to the person moved out. One gets knocked of the other with a payment for the difference.

One option is to sell the London place, or for your co-mortgage holder to buy you out (called transfer of equity in mortgage-speak).


Silvercar is completely right.

You can either sell the other part to your friend or use a let to buy product where the lender accepts that you are a renting the property and will not count as liability towards the new mortgage.

Cheers
Steve