Buying 2nd Home but on another mortgage

[22601]

hi,basically im after buying a house with my girlfriend but am currently on a joint mortgage with a friend on another house i have 10% deposit for the house with my girlfriend how much of a problem will i have getting another joint mortgage with the girlfriend? she is a first time buyer and has good credit rating and i also have good credit rating.

Thanks James

[22601]

bump anyone

[~ NC ~]

You will need sufficient income to be able to service both mortgages basically.

 

The new mortgage company will work out how much you and your girlfriend can borrow together, based on your joint income.

 

From this total amount they will probably deduct half of your current mortgage amount.

 

So if you and your girlfriend own 25K + 25K and the mortgage company allow 4 times income as a max loan, then they will lend up to 200K (many assumptions here, just in theory).

 

If your current mortgage is 100K then your half is 50K which they would deduct from this 200K.

 

So you and your girlfrient could borrow 150K.

 

So yes you can have 2 mortgages but the amount you can borrow may be reduced.

 

Make sense?

 

Alternatively, if you rent out your current house then the new mortgage company may ignore your liability on that loan and lend you the whole 200K.

 

Still make sense?

 

 

NC