Posted on 2 August 2016
I'm 51 and have a mortgage of around £125,000 on a house worth £280,000. The house is lived in by my ex wife and I pay the mortgage, it's in both our names though. For the foreseeable future this will continue as my two children, aged 9 and 7 live most of the time with their mother. I'm now renting with my new partner, paying around £900 a month. Our joint earnings are £103,000 and we have around £10,000 in savings - we really would like to buy and are both in full time employment. I'm a company director with 15 years service and my partner is a full time employee having worked in the same company for the last 5 years. What advice can you give us?
Thank you for your enquiry via our ‘Ask the Experts’ section of our website. Although not knowing your full financial position, it would appear, based on the information you have supplied that this something we can help you to explore. From the details you have supplied this looks like you could get a mortgage. You have an joint salary of £103,000, and you are looking to buy a property valued around £250,000k, with ongoing mortgage commitments towards a joint mortgage with your ex-wife.
Obviously we would need to know the all the details around your financial situation, given the new purchase is as at 90% loan to value (LTV) and you only have £10k deposit. It would be beneficial to have at least a 25% deposit, with a lesser deposit there may less lender choice and those that may consider an application such as yours could have less competitive products available to you.
As with any purchase it's important to remember that you will also need to cover other costs such as stamp duty, arrangement fees and solicitor costs. As you already own a property you will be liable for the extra stamp duty surcharge for the new purchase with your current partner as this will be classed as a second property.
To enable me to provide you with a definitive answer we would need your full financial details. Details of income, affordability and financial commitments will need to be discussed initially so we can find the right deal suited to your needs and the options available. Given all lenders use differing calculations to establish the amount of mortgage that are prepared to consider I recommend that you contact an adviser at John Charcol who will be able to recommend the most suitable lender based upon your individual circumstances.
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Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.
We recommend you seek professional advice with regard to any of these topics where appropriate.