Joint mortgage application if one party already owns a house

Charco

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I'm wondering if anyone can give me some advice. My wife and I are looking to apply for a mortgage. I have never owned a house but my wife owns a house which she bought with her sister before we met. We now rent an apartment together and my wifes sister rents out a room to a lodger in the house which covers my wife's half of the mortgage.
Therefore my wife does not fall into the 1st time buyer bracket, however neither is she trading up. I wonder how the bank will look on this and if we will still be required to have a 20% deposit in order to secure a mortgage?
 
In short, you are not first time buyers as one of you is not a first time buyer. However, banks do have it within their remit to move outside of the Central Bank rules in some cases so it's not a fait accompli that a 20% deposit will be required.
 
Ok thanks for that. Thought as much. Will need to hope we can get an exception
 
By default you require a 20% mortgage. My advise is to engage a mortgage broker and seek an exception. I was in this position earlier in the year and was able to secure an exception via a broker with KBC.
 
Will need to hope we can get an exception

The Exceptions are handed out on a calendar year basis.

At this time of the year it's much harder to get an exception as the banks have given out offers with exceptions in them and they don't know how many will take them up.

So if you can wait until the new year, you have a better chance of it.

And as Andrew said, use a broker.

Brendan
 
By the way, could your wife's sister buy out her interest in the house?

By doing that, you would be reducing your overall borrowings and if there is equity in the house, you would have more to spend.

You might not need a mortgage in excess of 80%

Brendan
 
Yes I think a broker will be our approach.
At present I do not think her sister will be able to buy her out as she would not be able to secure a remortgage on just her salary alone. Eventually it is the route we hope to go down though
 
At present I do not think her sister will be able to buy her out as she would not be able to secure a remortgage on just her salary alone.

Hi Charco

Have you asked?

Is it a tracker mortgage?

The existing lender might consider it.

If you post the numbers, we can give you a view

Value of house
Amount outstanding on mortgage
Sister's income
Lender
mortgage rate

Have there been any mortgage arrears in the last 5 years?

Brendan
 
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