Chances of a mortgage?

Azaezl

Hoping someone can give me some advice regarding a mortgage.

Here's the situation, my husband & I rent a 2 bed bungalow off his mum, it's been great living here but we have a 3yr old and would like another baby at some point so we need a bigger place. Mother in law is a wonderful woman and agreed to sell this place and use that money to buy us a bigger one.

We found the ideal house, it's huge and an absolute bargain, we put in an offer it was accepted and a week later we accepted an offer on the bungalow(alot less then the asking but enough to cover everything). All was going well and we were just 3 weeks from exchanging contracts when our buyer pulled out. We found out that another estate agent had approached our buyer and told them they could sell them the bungalow a few doors down for less then he was buying ours(this isn't the first time they've done this to someone btw) so of course he's buying that instead.

The lady who's house we were going to buy phoned up earlier to say she'll give us until the end of the month to raise the money to buy hers, whether that's another buyer for this place or get a mortgage(or win the lottery lol). Now we desperatly want that house but we can't get a mortgage so it would be down to my mother in law to get one. Does anybody know if she would stand a chance of getting one and roughly how much for?

The bungalow is on the market for £185K, the offer we accepted was £176K(bungalows go for anything between £170K and £180K around here)
The house we want is £168K
My mother in law is 58, works for the council and has worked for them for 15+ years so her job is stable, not sure how much she earns as I've never asked. She owns the bungalow outright btw.

I don't really want to ask the mother in law to go and see a mortgage lender if there is no chance of her getting enough money to buy the new house. I mean she's been generous enough in selling this place for us I don't want to be cheeky and ask her to get a mortgage / re-mortgage unless it's pretty certain she'd be able to get enough money to buy the new house(in which case I'd swallow my pride and beg her to get one).

feisty1

Quote we can't get a mortgage Quote

WHY?

LittleMissAspie

To get a mortgage of 168k, she'd need to earn at least 42k. That's assuming she can get 4x salary. If she doesn't, could her and your husband (I'm assuming you're a housewife) pool together for the mortgage?

Or there are things called bridging loans which you can get to buy a house when you haven't sold your old one yet. I don't know much about them except they charge a lot of interest, but it's something to look into.

monkeymaster

Azaezl wrote: »

bungalows go for anything between £170K and £180K around here

So why's it on at 185k?

silvercar

She won't be able to get a mortgage unless she (or you) have some money saved to use as a deposit.

If she needed to boost her income levels to get the mortgage, she could issue you with a formal AST (rental agreement) and then she would have her employment income and the rental income to show a mortgage lender.

feisty1

Renting to family?????????????????

Azaezl

Feisty - We can't get a mortgage because at the moment we are both out of work and yes we are renting from her, after all it is her house and we can't expect to live here for nothing, the rent is alot lower then the average price around here so she's not ripping us off.

Littlemiss - Thanks for that I'll casually ask her how much she is on, her partner is quite well off so maybe they'll club together and get a mortgage. I'll also look into a bridging loan.

Monkey - It's on at £185k because that's what the estate agent put it on at, the one a few doors down was on at £179k and they have accepted 162k for it, it seems almost standard practice around here for a home to go for £5k - £15k less then it's asking price, guess a house is only worth what someone is willing to pay/accept. I am going to be speaking to the estate agent about it as I think it will put people off, I personally think it should be on at £175k or therabouts.

Silvercar - thanks for that bit of info, again I can pass all of this on when I approach her about a mortgage.

Thanks for all the replies everyone, I'm hopeless with all of this sort of thing, my husband always deals with the money side of things but he's become so depressed over this whole situation and the credit crunch and everything that it's me doing all the running around trying to sort things / find solutions.

feisty1

YOU ARE CRAZY...........forget the other baby, concentrate on finding work and providing for what you have!

Zelie

This post might come across as a bit rude for which I apologise but I do think you need to look coldly and rationally at the situation.

Currently neither you nor your husband work. Now I'm not sure what you are living on or whether you are living rent-free at MIL's house but it seems as though you are in no position to go ahead with this plan. You need to make changes and one of the main ones is that one of you gets a source of income that you can survive on whether that be work or benefits. Stop thinking about expanding your lifestyles because you will be doing it on NOTHING.

My other point is that there is really no reason to move. You currently have ample room for yourself, your husband and your child. Even if you have another child there is no reason that the kids can't share a room until you are both back on your feet. Buying a larger house because you want to have more children is not sensible. Think how circular that is: you can't afford a bigger house so how could you afford to have more children once you are in the house that you can't afford anyway? I understand that you want more kids, that's normal. But I honestly think you need to put that plan aside for a year or two at least and focus on getting your family into a better financial situation.

Sorry to be so blunt but sometimes it needs an objective outsider to come along and point out the obvious.

feisty1

Pls Azaezl......Take note what is being said, in this economic climate to do what you plan to do is just complete madness. Sometimes you just have to put plans on hold.....concentrate on supporting yr husband to find work to bring him out of his depression. Wait, wait, wait............

Errata

No mortgage lender is going to give a mortgage to a 58 year old single woman.