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Spinning Plates - Mortgage Advise Required

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  • Spinning Plates - Mortgage Advise Required

    Good Morning,

    I am after some advice for quite a complicated situation.

    I have a first time buyer’s property that came with a grant, which I can transfer to a 2nd property on the basis that I require more living space etc than my current apartment offers.

    Two years ago I spotted an opportunity and purchased a prestigious apartment off-plan after some advice from a professional property investor who snapped up eight himself. This apartment ticks the boxes size wise etc to transfer my grant and I have had a mortgage in principal agreed on the property, which is due for completion in the last quarter of 2008. Happy days.

    I know that property has increased a decent amount in value since it was purchased off-plan but on completion I have arranged to sell my existing property, transfer that grant and rent it out via a management company for at least a further 18 months.

    I am then due to move into my girlfriend’s apartment (who also has a grant) and we are going to buy a house together (using her grant and profit from the sale) early 2009.

    This is where it gets complicated. By selling my girlfriend’s apartment on top of my savings we have a healthy chunk to invest in this house but my quandary is how to structure the mortgage(s) to ensure we don’t have any problems or are penalised for my existing mortgage when applying for that joint application?

    To ensure I transfer my grant I cannot opt straight away for a buy-to-let mortgage on my apartment. It has to be at least on the premise that I’m going to be moving in there and a-buy-to-let mortgage will let the cat out of the bag and that grant will go up in smoke.

    My initial plan of attack is to transfer the mortgage on my apartment over to buy-to-let at a later date allowing the income to be taken into consideration and minimising any problems/penalties when we apply to purchase the house together. Does this sound feasible or is there a more sensible way to structure this?

    I’ve done the sums, looked at worse case scenarios and cost wise we are well within our comfort zone but it’s the initial structure that’s got me scratching my head a bit.

    Many thanks in advance.

  • #2
    Definitely think you need advice from a professional Independent Financial Advisor here who deals with property - you have some pretty individual circumstances there.


    • #3
      Maybe a let-to-buy will suffice


      You may get your desired result from a 'let to buy' mortgage which is not really any different to a 'buy to let' mortgage only reversed, as from this angle it is made clear that your remortgaging one or converting the mortgage on your existing property to buy another property, whether that be investment or residential it shouldn't matter.