Mortgage offer!

[Megan96x]

Good evening!

Myself and my partner have finally received a mortgage offer after trying to obtain one since February.

My partner has a residential mortgage with his brother (partner does not live in the property). There are no intentions to sell this property, and no money from this property will be used to fund our deposit money.
We discussed this with our mortgage advisor etc, and answered questions regarding this property from the mortgage lender.
All seemed to be going well, and we finally got the offer!

Our solicitor today pointed out that one of the conditions of the loan being provided, is that the property my partner and his bother have is sold or the mortgage is paid off in full prior to completion of the property we are trying to purchase.

Big shock!

Has this happened to anyone? Could this be a simple mistake as we had provided information and told them we would not be selling..

Is it easy to dispute a condition in a mortgage offer?

I’m so worried the sellers are going to become irritated with us, and they may pull out!

I'm not sure consent to let will even be relevant as the brother is living there and is named on the mortgage. The property isn't being let; it's being occupied by someone who has a stake in it.

DP is buying a second home (have you accounted for that with stamp duty etc.?) If he is remaining on the mortgage of the first, then it's a case of proving he can afford to be liable for the two mortgages. This might mean running affordability checks again. Are you stretching yourselves financially?

Quite simply, could you afford to pay both mortgages? This is what mortgage underwriters will be assessing.

When I took out a mortgage on a new property I bought with my husband, I had an existing NRAM residential mortgage on another house that my sister lives in. I didn't have consent to let either. NatWest (new mortgage lender) said that their only concern in relation to this was affordability, which I passed. Once I had taken out the Nat West mortgage they then approached me to see if I wanted to move my NRAM mortgage. They gave me this on a second residential mortgage as they said it was ok as it was a family member living there. So I now have 2 separate residential mortgages with them. Would it be an option to try a different lender which may work this way?

@Megan96x

Have you looked into whether you need to pay the additional stamp duty for a second property? In Scotland you would be liable for it.

Hi all,

So basically, my partner does not live in the property, however his brother does/did - he has been staying at his parents since lockdown began, and will remain there until all is over as he is high risk.
This obviously means he is not able to look at purchasing his own property just yet.
So our plan was rather than converting the property to a BTL, and selling it when the brother has nothing in place yet - we would obtain a consent to let, and rent it out temporarily until all is in hand.

On the BOI situation, we have withdrawn from the offer as they would only accept the residential mortgage if it was converted to a BTL.

We have a new application in with TSB, who seem to allow a consent to let on a residential - we just have to provide documentation to back up the value and the potential rental income - which we have now done via an estate agent.

My fingers are crossed!!