Transferring a Mortgage - Advice please

BooWhitey

Hi All - I am a newbie on here so please forgive me if I make any forum faux pa's.

We have a mortgage on our house with Northern Rock for £143K, our property is on the market for £199950.

We are hoping to buy a property from my brother (private sale) for £340K. It's a 1920s old post office. My parents are offering to loan us £200K and I have asked Northern ROck about the possibility of transferring our current mortgage to the new property.

OK - here is the problem. I now have a poor credit rating no CCJs just a few defaults but non the less a poor rating (maternity leave in 2007 and DH out of work), I have sorted out all the poor deabt and we are back on track with everything and have been overpaying our repayment mortgage for 2 years now. Also Husband has been out of work for 4 weeks now and is starting a new job in 4 weeks time.

What I want to know is
1.what is the likely hood of getting Northern Rock to agree to transfer this Mortage?
2. If they do agree - would new credit checks need to be done?
3. Will this be a new mortgage or will it be the same terms & conditions etc?
4. Will they want all searches etc carrying out on the new property? (not having these done as it's my brother's house and he only had the searched done himself 2 years ago when he bought it)

Any other advice would be greatly appreciated. I've been chasing Northern Rock for these answers but they are being less than helpful.

Many Thanks in advance.

_Andy_

What are your incomes?

BooWhitey

Me - £37K
DH - £17K

Mrs_Bumble

How big were the defaults, when were they cleared?

To port a mortgage, in affect it would be a new application process, you do need to meet their existing criteria and they will credit check you.

If they agreed to port then you would have the same mortgage.

They and any other lender will require the valuation and searches to be carried out on the new property.

When your husband starts his new job will he be on probation?

Are there early repayment charges on the current mortgage?

Will your parents want monthly repayment for the money that they are lending you?

BooWhitey

Mrs_Bumble wrote: »

How big were the defaults, when were they cleared? One is being settled at present £3k, all others were settled about 3 years ago for below £50.

To port a mortgage, in affect it would be a new application process, you do need to meet their existing criteria and they will credit check you.

If they agreed to port then you would have the same mortgage.

They and any other lender will require the valuation and searches to be carried out on the new property.

When your husband starts his new job will he be on probation? Yes

Are there early repayment charges on the current mortgage? Yes - £2K

Will your parents want monthly repayment for the money that they are lending you? NO - inheritance tax planning - Gifted money

Please see answers above in Blue.

BooWhitey

Still haven't heard anything back from Northern Rock. I was just wondering if having a guarantor would help the situation?

Mrs_Bumble

I don't think that you will meet their criteria currently as they are very cautious of adverse, and the £3K default is a big one, but you will need to ask them to know outright. If you don't meet their criteria it is unlikely that they will view it any different with a guarantor but hey if you don't ask you don't get!

getmore4less

In the first post you say its a £200k loan not a gift you have to be clear about this.