Total Mess or a way out?

bt195771

My mother is in real pickle.
She is separated from her husband, but he stays in the house. He contributes nothing financially and she pays/ has always paid the mortgage and the bills but he won`t leave. They have an agreement that he receives 10k and he passes over his claim on the house. Then she would need to have him sign the deeds.
Problems lie;- she can`t get a mortgage for 87k due to her age(60) and credit card money owed (10k). She asked me to buy the house for £85k. I am on WFTC and worry if this would be seen as an income even though the money coming in to me as rent from my mother would go straight back out in mortgage payments. My mother would still pay the mortgage as it is and no money changes hands.

I`m willing to provide any info further.

Any advice is gratefully received as she is in a terrible situation as you can imagine. Thank you

herbiesjp

Age is not really the issue - unless she does not work any more

She needs £87k

What is the property value?
What is her gross annual salary?

bt195771

Thanks for taking time to reply.

She is in employment (college) and can work until 70 in her present job.

She needs 107k to clear her debts and get him out the house. She had been accpeted twice but when the credit cards are mentioned it`s like an automatic refusal.
Her gross annual income is £28000
House currently valued at £130,000

We feel that she may be forced to sell the house unless I am able to "buy" the house and she rents it.

Thanks again.

herbiesjp

So you would be looking at 82% loan to value (value of mortgage against property value)

The income she has if fine to get the mortgage agreed in her own name - she only needs to find a lender that will agree the mortgage term for her.

She would really need a good pension/investment income to allow her to support that kind of mortgage post retirement though

All the normal warnings about turning unsecured debt into secured debt apply

bt195771

post retirement seems to be a problem. It is simply to get a deal for the next few years before she can sell it.
thanks for trying to help.

herbiesjp

Well then she can take out a 10 year mortgage, up until she retires at 70

And then sell up within that timescale

Should be straightforward, as her income is fine