Can we take a mortgage in my husbands sale name & borrow on our Buy To Let at the same time?
Posted on 15 March 2014 by Rose
We have sold our family home (we are renting whilst looking for a home). Are we able to purchase our next house in just my husbands name? even though the previous mortgage was in both our names? Would the deposit from the previous house sale need to be signed over to just his name ?
My second question is, we have a buy to let property that we would like to remortgage to help finance the new house purchase. Would the amount my husband wants to borrow for the new house be affected because the buy to let still has a mortgage on too? thanks in advance.
The new mortgage can be potentially taken in your husbands name with the deposit coming from the sale proceeds of the previous property. Some lenders though will insist that both spouses are named on the mortgage, and those who would at this scenario, will almost certainly ask the question, why you don't want to be named on the new mortgage? You will have to sign a consent to mortgage form, and you'll need to take independent legal advice to protect your position and share of the equity from the old house. Depending on where the funds are held – joint or separate accounts – a number of banks may not be able to take a deposit coming from the non-participating spouse.
With regards to the investment property – although there are lenders who will look at the overall indebtedness when they decide to lend on the new residential property, there are a good number who will dismiss the buy to let mortgage as long as the property is self-sufficient , i.e. rental income covers the mortgage and associated costs.
At John Charcol we are very experienced in arranging and synchronising both transactions while working with clients’ budget and preferences. If you'd like to discuss your options in more detail, then please contact one of our consultants on 0344 346 3672 and they'll be able to give you an idea of how we can help.
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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.
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