Second property advice

[abgriff]

I'm hoping someone can help answer a question I can’t seem to find an answer to online.

My fiance and I own a property together and have a shared mortgage. (Property value: £190k Mortgage of: £158k). However, due to my work commitments, I am considering purchasing a second smaller property nearer to my place of work, as we are unable to sell and move due to my finances work location.

The property I’m looking to purchase is approximately 120k however I only have a deposit of 5%.

Both my fiance and I are in stable relatively well-paid jobs 40k + and would be able to support a mortgage individually.

My question is, is it possible to remove one person from the mortgage so that I can then apply for a separate new mortgage by myself?

And would the fact that I have previously been on the mortgage affect the mortgage deals that I could apply for?

Your advice on the matter would be very much appreciated!

Many thanks in advance

[Lilla D]

Not sure if you've managed to get things sorted in the meantime, but I thought I'd add my pennyworth just in case.

If your fiancée can indeed afford the current mortgage in her name only, then it is possible for you to come off the mortgage and the deed of your current property and then get the new mortgage in your name. However, you'll need to speak to a solicitor in relation to the stamp duty implications, as technically your fiancée is buying the property from you.

From mortgage point of view, I agree that getting a second mortgage at 95% LTV would not really happen, so your plan sounds like a good idea.

Of course, all the above assumes that you wouldn't be renting out your current property. If you would, then you could either just get a consent to let from your current lender or remortgage onto a BTL deal and you'll be fine to get a new 95% LTV mortgage on the new property. These options would mean that you'd stay on the current mortgage and title deed, so when you buy the new property, you'll be liable to higher rate stamp duty payment.