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what to do (mortgage)? newbie

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  • what to do (mortgage)? newbie

    Hi I am new to property development. A little about my situation,

    I own my house outright (315k) and I have a 30k deposit avaliable. I don't have a job (I'm taking a break to look after my 2 small children at the moment). My partner has a job and is earning approx 40k per year. However, he's about to leave his job in the summer to work with me in property development.

    Now, my questions are...

    Should we apply for a new mortgage to purchase our 1st development property, or should we try to remortgage our house and therefore be a cash buyer on the development property?

    Is it illegal to apply for a mortgage knowing full well my partner will be leaving his job soon? He hasn't handed in his notice yet, but will soon so time is ticking...

    Should we apply for the mortgage in his name or my name? I have bad credit, but do own the house. He has a reasonable credit rating and a job (see above).

  • #2
    Re: what to do (mortgage)? newbie

    If you've got 100% equity in a house worth around £315k and £30k cash, I'd be amazed if you had any trouble at all mortgaging your own house.

    If it were me, I'd do that and buy a development property with cash.

    I don't think it's an offence to not inform the lender that your husband will be leaving his job in the summer. Afterall, he may change his mind and stay in his job until you've done the first project to see how it goes. It would be different if he was definitely being made redundant on a specific date that you were fully aware of at the time of application.

    Kaz

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    • #3
      Re: what to do (mortgage)? newbie

      Not sure it's illegal not to declare that your partner is leaving work but it's unethical to apply for a mortgage based on that income I'd say.

      As above, your partner might want to stay in employment during your first project as you might find that it's either not for you or that the income you can make cannot sustain your current lifestyle

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      • #4
        Re: what to do (mortgage)? newbie

        "unethical"
        do you mean like the banks/building societies that lent people 5, 6, even 7 times their salary and gave out 100% mortgages like they were going out of fashion? that sort of unethical????

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        • #5
          Re: what to do (mortgage)? newbie

          I don't think it's an offence to not inform the lender that your husband will be leaving his job in the summer. Afterall, he may change his mind and stay in his job until you've done the first project to see how it goes. It would be different if he was definitely being made redundant on a specific date that you were fully aware of at the time of application.

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          • #6
            Re: what to do (mortgage)? newbie

            Is there an echo in here

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