Non-Standard Single Mortgage Application

Hi,

I'm trying to find a Mortgage lender that who can assess me for repayment alone but also take into account the fact that my husband pays half of our existing Mortgage. My situation is this:

I want to get a 2nd Mortgage (about 100k which will be 50% of the property value) towards a holiday home. I'm applying for this myself as a Single Applicant. I also have a mortgage on our family home jointly with my husband, which we both pay. We both also pay the bills, childcare, upkeep etc.

I applied for the 2nd Mortgage through AIB (on advice from a broker) but they said that, as I'm the only applicant, my whole application will be assessed as if my husband was not included in the picture at all. So, the assessment was done as if I'm paying for my 1st Mortgage and every other living expense on my own, without his contribution or salary taken into account at all.

This has resulted in me being deemed not to be in a position to repay the 2nd Mortgage. Is this the way assessments will be performed by every lender in this situation? Does anyone know of any other options I would have in this scenario?

Thanks

Whatever about the bills scenarios, mortgages are jointy and severally liable so banks never consider that you are only liable for half the payments as legally each of you is liable for the full repayment. If applying for the new mortgage jointly is not a runner for whatever reason you will probably find underwriting will take the full mortgage repayment into account.

Why not just apply for the 2nd property jointly with your spouse ?

Introuble83 said:

Why not just apply for the 2nd property jointly with your spouse ?

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Yes, it looks like I'll have to do it that way I just didn't want to give him the hassle as, financially, I can pay for it myself and he's not that interested in it.

GenerationXer said:

Yes, it looks like I'll have to do it that way I just didn't want to give him the hassle as, financially, I can pay for it myself and he's not that interested in it.

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In terms of mortgage rates they will likely put you on the BTL rate as the 2nd property is not your PPR. Might be worth shopping around as the difference between the BTL rates and PPR rates can be high

Introuble83 said:

In terms of mortgage rates they will likely put you on the BTL rate as the 2nd property is not your PPR. Might be worth shopping around as the difference between the BTL rates and PPR rates can be high

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I'm thinking along the same lines myself. When I explained my scenario to the broker they said that only AIB would have a package for a 2nd home but when they calculated if they described is as the BTL package. Gonna check out some other options, thanks.

Anything other than your PPR becomes a BTL in bank terms, there isn't a different holiday home mortgage so it will be underwritten as a BTL, on the plus side of this though they make take into account a percentage of a potential rental potential. For example if I buy a holiday home at the seaside then unless I'm going to be there every single week from April to Sept there is a potential to rent it in the empty weeks. This may help your income situation on the underwriting side.