BTL remortgage me out and my wife in?

Dear Faiza,

Your first broker at a guess is more likely to be correct, because if your wife has a joint mortgage with you and there are missed payments these will count as bad credit against her as well. Therefore your wife is also likely to find it difficult to agree mortgage lending.

On the second question if I have understood correctly then yes your wife could purchase in full the property and take out a mortgage in her sole name, but I think you are still going to have the same problem for her as above.

I thought MX will be no longer lending and are trying to close their books

You haven't mentioned if you've considered how this will be affected by the reduction of relief on mortgage interest (Clause 24) in 2020 - presume the marginal property will be loss-making and your wife will become higher-rate tax payer if she has 100% beneficial interest in 3 or 4 properties? There's a good calculator elsewhere on this site.

One of the first hurdles you will come across in any type of ownership restructuring is the financial associations that will be held with all the Credit Reference Agencies.

This will be in part due to sharing an address, but will be made stronger by any joint financial products from mortgages, loans especially secured ones, and even having a joint account.

The other red flag will be raising of additional capital, even though this being used to expand the portfolio, most lenders will not look favourably on this due to adverse credit.

If you take a step back, look objectively at the situation as is, would you lend additional monies to yourself or your wife. Your history shows poor financial planning and management, that's essentially what is flagging poor credit.

You mention you have credit problems, it would be more helpful if you could expand on this?

It would be helpful to understand any non-mortgage related credit you have. Ideally by lender, type, amount outstanding, and whether payments are up to date.

Also any CCJ's that you have that are either live or that have been settled within the last six years.

Obtaining a statutory credit report from Experian, Equifax, and Call Credit is a starting point. This can be done online if you have sufficient information to hand, at least with Experian.

http://www.experian.co.uk/consumer/statutory-report.html

https://www.equifax.co.uk/Products/credit/statutory-report.html

http://m.callcredit.co.uk/consumer-solutions/your-credit-report/statutory-credit-report

I assume you own your own residental property? If so, is this with or without mortgage?

I note that the MX property is 34% LTV as it stands? Yet the better indicator is that even your wife can only get 8.99% APR! You mentioned also being offered 3.49% subject to valuation, is this with or without the extra £150k being added to the MX property still allowing a sub 60% LTV.

You mention other properties in your sole name, again to provide objective advice more details would be needed?

Property value, mortgage amount outstanding, and another secured lending against the property.

Everyone's situation is different, but my first thought is to consider selling one or more properties to get your financial situation into a much better state, one that is sustainable and would allow you get through any potential downturn in the economy.

Utilising gifting, any available PPR relief, could minimise potential CGT payable!

In summary what you've suggested is just a sticky tape solution to a bigger problem.

Using your wife's "better" credit is a fallacy for all the reasons situated above.

I'd suggest reposting with a full view as explained above, or seeing a specialist financial adviser with debt expertise and knowledge of working in sub-prime situations.

Pleas consider carefully any advice given on this site, it's amongst the best free advice you'll get anywhere.

Good luck!

PS
If you want to send me a PM, I'd be more than happy to offer advice on a non-fee basis.

I have experience in working with people with debt issues in the voluntary sector, but need to stress I don't hold any professional accreditation other than academic qualifications in Finance Law.

Dear Faiza,

Firstly, in essence you may be able to remortgage and take yourself off the title to the property, and transfer the equity to your wife, but there is no guarantee. In terms of remortgaging rates and options, there is no one answer to this, as lender criteria is very complex.

As Neil has said above, as your wife has been on the mortgage with you, your adverse credit may directly impact her getting a mortgage in her own right.

Depending on the level and nature of your adverse credit, there are some lenders available who specialise in mortgages for those with impaired credit, who may be able to help you with a lower rate.