Shelter’s Income and expenditure figures highlighted13:57 PM, 4th February 2019
About 2 weeks ago 35
I wonder if you can advise or offer some thoughts please on this.
My wife and I jointly own a flat which is rented out and the lender is Mortgage Express. The value is £650k. Mortgage outstanding £220k. Rent is around £2.5k p/m.My credit is very bad – with adverse on other properties I own in my name alone and 1 other property with my wife (lender BMS).
Scenario is this – can we remorgage the MX property and remove my name and just leave my wife owning the property as her credit is better then mine. A broker has said that we got agreed in principle firstly with a HIGH RATE of 8.99% where this broker suggested he arranges and we my wife stays on this rate for 6months and then re-mortgages to a standard BTL rate.
Then another broker said he can arrange a rate at 3.49% did not state lender, but said it was all up to the valuation. We did want to raise additional funds to purchase another BTL. We wanted to raise £150k on top of the £225k balance currently. Last 12months all payments up to date with MX. My wife’s income is only from the 2 properties and will be approx. £27k pa.
ALSO – another question please if I may.
I also own another flat in my name alone where the 1st charge lender is owed £200k where I’m paying 2.25% BUT GUYS THIS IS THE KILLER – I have a 2nd charge and TOGETHER the rate is 13.9% pa on a balance of £155k. With these very high monthly payments this property is almost non-profitable as it stands.
RATHER THEN SELL – is it possible to DO A GIFTED EQUITY DEPOSIT to my wife and do a remortgage in her name alone. The value is £675k – combined 1st and 2nd charge balances are £355k around. It is rented on a ROOM BY ROOM basis 5 rooms. Rental £3.6k PM..
Also the other one we own jointly BMS – can we again do the same where I remove my name and she takes over.
In essence I remove my name from all the 2 joint named properties and do a transfer or sale – gifted equity deposit to my wife. Hope this makes sense and thank you so much for all your help.
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