Myself and girlfriend both own property, but would like to sell and buy together… one has neg equity?
We’d really like to sell both and buy our 1st home together. However, one has negative equity (approx 10k) due to recent recession and the other has approx 25k equity. We were both made redundant last year and consequently had some arrears on our mortgages but they were quite low and we’ve almost caught back up now. So… how would we stand if we were to sell one house but keep the one with neg equity and maybe rent it out? Would we be able to get a joint mortgage together if the house had a tenant? We don’t earn fantastic salaries but could certainly afford a house together. Any help, advise or pointers would be appreciated… Thanks
They don’t care about neg equity or whatever ..
They will look at your income and outgoings (at the time you apply for the Mortgage = so I suggest sell up and get in a Tenant BEFORE asking about a another Mortgage)..
They will subtract the existing Mortgage payments from your income to end up with a ‘net’ income .. and then offer you a Mortgage based on that… I would expect a max. of about 3x your joint net income would be available ..
Your Credit Rating will not be high, but the fact that you are both working and paying off the arrears will help (you might what to start with your existing Mortgage supplier .. they may be more sympathetic since they know your history) .. even so, do not expect to get an offer for more than 75% LTV and do not expect to get the best deals ….
How about renting out or selling the profitable house and living together in the neg. equity house? then you can sell when prices go up again