UK Landlord Forum / Life

Hi!

Me and my partner were hoping to move in together at Xmas (at my house) and he was intending to rent his house our rather than sell as he has recently remortgaged and doesn't want to pay all the early settlement fees etc.

Just recieved a letter than his application has been declined as he has a too high loan to value ratio on his mortgage. I assume this means he took out pretty much all that was offered to him at the time.

I am a little bit gutted that we can't go ahead with it without him selling up, he could sell but won't make anything on the house (plus the relationship is relatively new so we wanted a "trial run" so to speak) so we were going to wait 2-3 years.

Apparently if he repays some of the capital they will consider it, but we don't have anything spare to use as a lump sum right now

Anyone in a similar boat?

Thanks

Sarah

Hey Sarah,

Welcome to the forum.

I'm sorry to hear about your situation, but the scenerio you're in is quite common, especially since lenders have tightened up after the whole northern rock saga.


It might be worth looking into selling and buying something cheaper to rent out, regardless of the early payment fees. It might work out better. I know it's a kick in the teeth to lose that much money, but it's an option. Do you know how much he will be penalised if he sells early?

Hi Sarah.
Welcome to the forum,
Forgive me for being a ickle tick here, but he was refused for what, going onto your mortgage or  renting out his house !  No one needs to know hes renting, but i am sure if the mortgage lender knew he would default on his mortgage if he didnt they may change their minds !.

Where theres a will there is a way


Badger

Hey badgey,

I see you've updated your avatar- very fresh!

I assumed they were applying to get him under her mortgage. Errr...

But yeah, good question!

Well if Sarah is looking at it as a bit of a trial it would be stupid to get him involved in a mortgage that would allow him to half the equity that she has built up.  Just looking after her interest here, if all went tits up after 2mths lets say, he could ask and be granted half the house, just on a trial, Crazy !!!!.

In this case rent out his house on a 6mth contract, moves in with Sarah and see what happens, if it all goes tits up she keeps the house with no obligation what so ever and he has his own to move back to etc etc etc etc.



Bagder

Yeah, what you're saying makes perfect sense.

Now that you raised the whole, "what did he get declined for" question, i'm not entirely sure what the situation is.

But, if the problem is that he can't get a joint mortgage with her, maybe it's better that he did get refused, so they can see how it works out.

But then again, we're property people, not family-relations counsellors!

My other job is infact a f


lol

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