Hi,
my wife and I currently have a joint mortgage and are thinking of moving house. We would like to avoid a chain so are considering options.
We have a fairly small mortgage on our current house so I wondered if the following would be feasible.
1) remortgage current property in my name (remove wife from deeds) to raise deposit.
2) wife uses deposit and gets a mortgage on the new place in her name
3) sell current home (and pay any early redemption penalties)
The total mortgage lending would be higher than we would be loaned if it were a single mortgage in joint names. Each individual mortgage would be within the limit that could be borrowed for a single income.
e.g. not real figures
current property worth £300k with no mortgage
I borrow £150k against this (4x income)
use £150k for deposit and wife borrows £200k (4xincome) to but home of value £350k
total borrowings £350k lets says this is 4xjoint income so wouldn't be lent us as a single mortgage but each individual mortgage is within 4x that person's income.
The mortgages would be affordable for us but obviously there are costs associated with paying interest, arrangement fees etc. however in the current market the power of being a cash buyer should offset this.
I'd be very grateful for feedback from anyone who knows about this or who may have an alternative suggestions.
Thanks in advance,
R
my wife and I currently have a joint mortgage and are thinking of moving house. We would like to avoid a chain so are considering options.
We have a fairly small mortgage on our current house so I wondered if the following would be feasible.
1) remortgage current property in my name (remove wife from deeds) to raise deposit.
2) wife uses deposit and gets a mortgage on the new place in her name
3) sell current home (and pay any early redemption penalties)
The total mortgage lending would be higher than we would be loaned if it were a single mortgage in joint names. Each individual mortgage would be within the limit that could be borrowed for a single income.
e.g. not real figures
current property worth £300k with no mortgage
I borrow £150k against this (4x income)
use £150k for deposit and wife borrows £200k (4xincome) to but home of value £350k
total borrowings £350k lets says this is 4xjoint income so wouldn't be lent us as a single mortgage but each individual mortgage is within 4x that person's income.
The mortgages would be affordable for us but obviously there are costs associated with paying interest, arrangement fees etc. however in the current market the power of being a cash buyer should offset this.
I'd be very grateful for feedback from anyone who knows about this or who may have an alternative suggestions.
Thanks in advance,
R