I think I can cover the new mortgage and my half of the other one, but have been told that I can't. Is this right?
Posted on 13 August 2015 by Debbie
Hi, I am currently named on a mortgage with my husband and I don’t want to come off of that one. We are looking for a mortgage of £50 000 and we are putting down £25 000 deposit. According to my calculations my salary is enough to cover the new mortgage and my half of the other one. We have been told that I would most certainly have to remove myself from the mortgage with my husband before we can proceed with the new one. Is this really necessary? Thanks, Debbie
I'm afraid that this may well be the case. All joint borrowers are what is known as "jointly & severally responsible" for the mortgage, which means that as far as any lender is concerned, irrespective of whatever private arrangements you may have between yourself and your hsuband, both of you are equally liable for the whole of the monthly payment. Therefore, when they are assessing your affordability for the new property, they will factor in that you are liable for 100% of the current mortgage, rather than the 50% you actually pay.
All lenders do have slightly different ways to calculate affordability, and it may well be that there's one in the market who could assist you.
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 whether we can help you in this instance.
More than mortgages, talk to me about: Financial Protection | Investments | Personal and Corporate Pensions | Home Insurance General Insurance | Valuations | Conveyancing | Wills | Home finders
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.
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY DEBT SECURED ON IT.
John Charcol is a trading name of John Charcol Limited and its Appointed Representatives. John Charcol Limited is authorised and regulated by the Financial Conduct Authority. The Financial Services Register number is 665649. Registered in England No. 9157892. Registered office address for John Charcol Limited is 5th Floor, Cutlers Exchange, 123 Houndsditch, London, EC3A 7BU. The FCA does not regulate some investment mortgage contracts. Calls may be recorded for training and monitoring.