Two Mortgages

Posted on 22 August 2011 by Chris


I currently have a mortgage with my brother. He moved out about 3 years ago and has not paid anything towards the mortgage. He is now looking to get a mortgage on his own but it means I have to get a new mortgage deal which increases my repayments by about £300 a month. I cant afford that at the moment as I am saving for a wedding. This will change in 12 months. Can he still get a mortgage if we leave his name on my mortgage?

Chris

All the while your brother is named on the existing joint mortgage he has a legal responsibility for ensuring payments are made in full and on time.  For this reason any new Lender will want his income to cover both the existing mortgage and the new one.

There are two ways that they can assess the affordability of both mortgages and this differs between Lenders.  Either they can add the two mortgage debts together and apply an income multiple or they can take the existing mortgage as a monthly credit commitment and make a negative adjustment to their affordability calculation.

I am not quite sure why you are having to have a new mortgage deal?  If you can afford the mortgage on your own then your existing lender would normally make an administration charge to get the title changed, but leave the existing mortgage in place.  If you are remortgaging, I think you should speak to you existing lender before you go any further.

Peter

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