Mortgage problem.

[mx stu]

Learned folks (specifically mortgage adviser types) any chance of a solution this issue:

The Facts:

I've owned my house for 8.5 years and in the meantime I've acquired a wife (and we've had two kids). The house we live in remains in my sole name as does the mortgage. My wife bought a house with her brother a year or so before we met and continues to be named on the deeds and the mortgage. The brother cannot afford to buy her out but has a long term tenant covering her half of the property. If we sold the house we would take a loss and also make her brother homeless. It is worth mentioning that my wife doesn't work as she looks after the kids.

The situation:

We now wish to move to a bigger house and have found a few we like.I thought going ahead with the new house and mortgage solely in my name (mortgage multiplier and affordability fine based just on my income, but would require a 90% LTV on new house)would work. How wrong I was! Spoken to a few lenders now who as soon as I've mentioned I'm married they ask whey the application isn't in joint names. When I explain about my wife's house they have put me on hold and spoken to the lending team or underwriters. The have then either come back saying because of the second house we are limited to a 75% LTV or we need to factor into account the full mortgage payment in the affordability calculations or the income multiplier needs to be enough to cover the whole of the new mortgage plus that outstanding on my wife's place (which incidentally is on an interest only mortgage and bought at the top of the market so the loan isn't reducing).

Any thoughts?

One lender (very expensive rates and fees) suggested getting her to fill out an agreement basically saying that she was solely a tenant and had absolutely no claim over the new property. Anyone know what type of agreement this is?

Any views/ opinions would be gratefully received.

[Sarnie]

I can help with this, drop me a PM

[mx stu]

Cheers for the reply Sarnie, will bear it in mind but the issue might have gone away as I spoke with HSBC last night and got an agreement in principle. They were adamant that as long as the new mortgage and new house were solely in my name then it wouldn't be an issue. My only concern is that from general reading around on the internet HSBC seem to be more than happy pulling the plug on mortgage for any reason later on down the line.

[jdw1234]

mx stu said:

Cheers for the reply Sarnie, will bear it in mind but the issue might have gone away as I spoke with HSBC last night and got an agreement in principle. They were adamant that as long as the new mortgage and new house were solely in my name then it wouldn't be an issue. My only concern is that from general reading around on the internet HSBC seem to be more than happy pulling the plug on mortgage for any reason later on down the line.

I had a mortgage done with HSBC July this year and had zero problems with any aspect.

[Sarnie]

mx stu said:

Cheers for the reply Sarnie, will bear it in mind but the issue might have gone away as I spoke with HSBC last night and got an agreement in principle. They were adamant that as long as the new mortgage and new house were solely in my name then it wouldn't be an issue. My only concern is that from general reading around on the internet HSBC seem to be more than happy pulling the plug on mortgage for any reason later on down the line.

If you can actually get a mortgage from then then brilliant, they do have great rates, however they do they the lowest AIP to completion rate in the industry. My experience of them is that they don't like anything that is outside of standard criteria. Good Luck!

[Popeyed]

jdw1234 said:

mx stu said:

Cheers for the reply Sarnie, will bear it in mind but the issue might have gone away as I spoke with HSBC last night and got an agreement in principle. They were adamant that as long as the new mortgage and new house were solely in my name then it wouldn't be an issue. My only concern is that from general reading around on the internet HSBC seem to be more than happy pulling the plug on mortgage for any reason later on down the line.

I had a mortgage done with HSBC July this year and had zero problems with any aspect.

Same here, no problems at all with getting a mortgage with HSBC. And similarly to the OP, the mortgage is in my name only, although Mrs Popeyed had to sign to state that she will excercise no lien over the property if I were ever to default.

[mx stu]

Popeyed said:

Same here, no problems at all with getting a mortgage with HSBC. And similarly to the OP, the mortgage is in my name only, although Mrs Popeyed had to sign to state that she will excercise no lien over the property if I were ever to default.

Excellent, some encouraging news.

[Dunclane]

Through Sarnie, I got a mortgage in my name only with the Halifax. The wife just needed to sign a form as stated above.