Advise regarding mortgage

biglad

Please stick with me as this is quite long winded

I have really bad credit, im on a debt management plan with payplan but have been paying back for around 2 and half years and paid just over £8k. I have no CCJ's just lots of defaults and around £12k more of debt

I currently rent with my girlfriend but she has just been given a trust fund but needs to be put towards a house. I have a disabled brother and my mom is struggling to cope so my girlfriend suggested that we buy a house with my mom.

My mom has around £70k equity in her home and a £30k mortgage and around a £10k legal aid bill to pay. She would sell her house and put all the money straight down on a house.

So with my mom just taking her mortgage with her and the equity plus my gfs trust fund there will be between £120k - £140k depending on what she sells her house for. We are looking to get a house around the £200k mark so maximum mortgage my gf would need to get would be £80k

Now due to my credit history we was thinking it best to not have me on the mortgage at all, or would it not make that much difference??

we are not looking to buy til around 12 months time as we have a contract on rented property til october. Would it be worth me going on the mortgage so we can get a bigger house cos in theory we are putting down over 50% deposit or is it best i stay off the mortgage and let my girlfriend and mom sort it?

how would the ownership be sorted in terms of my girlfriend and mom owning it? and also my mom doesnt work as she is full time carer for my brother so would she lose her beneifts? i know she will still get carers allowance and my bro would get his DLA.

sorry for all the questions just unsure of the best route to take

biglad

anyone any ideas??

thanks in advance

mummytofour

So what happens if u and the GF split up?

silvercar

Could you all happily live together?

LandlordLee

If you and your GF split up you own nothing. Your name will not be on the mortgage and it could mean you mum is forced to sell again if she can not buy her 50%.

Sounds to me your mum would be in a worse off position. She would have a £40k mortgage instead of £30k and its not 100% her home.

Sounds very complicated to me. If she was your wife it could work, but she is your GF.

You would not get a sniff of a mortgage with your background i am afraid.

Have you ever thought buying your mums home instead and letting her rent this back from you? This way you could have her house for the future, and your mum will have £70k in her pocket.

biglad

Thanks for comments and understand your concerns about if we split up

If god forbid we split up then my gf takes her half and my mom hers. At the end of the day im not in any situation to buy. We have lived together before allbeit in a lot smaller house and it seemed to work fine. mom would just carry current mortgage with her and not be aby worse off

What difference if she is my wife or gf, we will prob look to get married in a few years time anyway.

mom needs out of her house and at the end of the day its not a factor of the money and who owns the house. I am my brothers second carer and will inherit moms half of the house when my mom passes anyway. My mom and brother need the help which is the whole reason behind us doing it.

more interested in how they would go about the mortgage, i mean if my gf got a seperate one would they give her one for only half the value of a house??

biglad

anyone any ideas??

biglad

anyone any ideas??

silvercar

The basic rules are that the names on the mortgage match the names on the house deeds. So if your mum and your GF are the contributers, in terms of equity and income for mortgage purposes, then the house would need to be in their names. You only have one first mortgage on a property, so they would need a joint mortgage. You would need to sign a deed of postponement, as an adult intending to live in the property - but that is not an issue.

You would then also get a deed drawn up specifying who owns what proportion of the house.

If I was a solicitor acting for the purchase. I would want to be happy that you all individually understood the possible implications of buying together.

biglad

Thanks very much silvercar.

So basically my mom wont be able to carry her current mortgage of £30k and just put it into the new property? Obviously i will be contributing to the mortgage etc just wont have my name on it

only prob is mom is on beneifts so would she still be able to get a mortgage with my gf as she has no income as such. we are all fully aware of the consequences and implications of buying together.

main concern is can they get a mortgage together and think that you have answered yes so happy now. If current figures are correct in house price falls in the area we are looking a currently priced 200k house should go for around 150k this time next year, which means we may only need to get a mortgage of say £50k.

If my mom was to put 70k into the house then could a soliciter draw something up to say that she owned that % of the house should all go tits up, and my gf own the rest or would it have to all be in gf name and the 70k from my mom would just be part of the deposit?

sorry for all the questions but help is grately appreciated