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Interesting Mortgage Scenario

mikeclark007

Well-known Member
I'm awaiting a phone call from my banks Mortgage Manager later in reference to a new Mortgage I seek with my girlfriend. We are looking at starting a family and recognise the need to move in the near future.

Just wondering (and worrying) what my options are against my circumstances below:

My girlfriend currently has no mortgage / debt / savings to her name so thats easy enough.

I currently have 2 Mortgage products against this same bank. One of which is my own home (2 bedroom flat worth approx. £110k) which I owe £55k.
I also "share" a property with my sister. I say "share" because in terms of the mortgage we are joint names on it but I don't pay a penny towards it. We took it out joint in order for her to secure a home as due to her circumstances at the time they would not lend to her alone. I did however stake £25k towards the £75k deposit that was put down on the property. The Mortgage currently stands at about £27k.

My understanding is that both debts above will come off the total lending from my bank against a third product so as you can imagine £82k is quite a sizeable amount that I can forget.

Oh and IIRC from a previous discussion with the Bank i'm also looking at a 25% deposit against a new property due to having at least one other Mortgage product already.

My options seem to be:

1. Give up my stake in the "shared" flat and allow my Sister to repay my £25k as and when in the future and for her to be recognised by the Bank as the sole owner.

2. Remortgage my home for however much I can to release some funds to put towards a new property.

3. Give up the "shared" flat for the reasons above and also sell my own home.

I can't stress enough how much I love my flat and want to keep it to rent out in which all of the ones in this estate do easily.

All the above sounds like a brilliant situation to be which I am thankful for ..... but its still causing me quite a concern in terms of how messy it could be and generally getting my head around what might / might not be available without shelling out a fortune to the Banks, Estate Agents, Financial Advisor (if recommended) and Solicitor (if needed).

Hopefully someone is / has been in a similar recent situation. Its certainly a lot easier to write down than explain to someone in person :)
 
Last edited:

unique

Moderator
i think you might be best speaking to an independant financial advisor
 
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