In a right mess with mortgage and the future need advice...

happyandlost

Hi I posted on here 2 years back now! GOD! with the same issue that hasnt been resolved yet.

Basically me and my partner, J, got a mortgage for a property which was actually for J's mum to live in. She had split up with her partner and the sale of the house fell through so we decided to get the mortgage on the bungalow for her so she could still move out. We were FTB's at the time.

The theory behind it was when her old house sells then the money she gets from that will pay off our mortgage on the bungalow she lives in and then we will be mortgage free again.

Just to point out since then, me and J have moved in together but we are obviously renting as we cannot get a mortgage for our own house whilst we have this one on the bungalow.

Her old house is still on the market and is just not selling so we are stuck renting until it's all sold and paid off and our names are officially clear from this mortgage.

I must point out that J's mum is registered disabled and cannot physically work so is paid various benefits and this was the reason why we took out the mortgage for her instead as she would not have been able to take a morgage for the whole amount needed due to her level of income. So he taking over the mortgage we currently have would not be possible.

What i'm wanting to know is, is the only option we have to wait it out? or is there some miracle out there that would allow us to buy our own home as well as having our names on the current mortgage??

Also, say if the only option is to wait it out until it's all sorted, we wouldnt then classify as FTB's would we as we have previously had a mortgage so that means we would need to save up for even more years in order to get a deposit of at least 10 - 15% as we wouldnt qualify for any FTB's rates or deals anymore.

What a mess!!
Sorry if these are completely stupid questions!


Any advice would be appreciated. Please dont tell me how stupid we have been to get ourselves into this mess.. as we already know!

Thanks.

xxx

SouthCoast

Her old house is still on the market and is just not selling

Reduce the price.

nervousftb_3

happyandlost wrote: »

Also, say if the only option is to wait it out until it's all sorted, we wouldnt then classify as FTB's would we as we have previously had a mortgage so that means we would need to save up for even more years in order to get a deposit of at least 10 - 15% as we wouldnt qualify for any FTB's rates or deals anymore.

regardless of whether you are FTB's or not, you will still need at least a 10% deposit to buy another house.

Senior_Paper_Monitor

Ownership/equity/value/charges/distribution of proceeds on old property ?

Value/mortgage on new property ?

Dependent on the above, various options may be available

happyandlost

The price on the house that is still on the market has been brought down - BUT her ex still lives there..

(which is a whole other part of the story that i didnt want to bore you with but basically he ended up paying her some of the money she is owed from it which was i think from memory about £50k. so she is still awaiting £70k from the sale when it eventually sells.)

But anyway he is being an a*se and will not reduce the price to what it should actually now be hence why it's still not selling. There is a written agreement in place that she will receive a minimum of £70k from the sale regardless of what the final sale price is - it's currently up at £230k.

The mortgage we have is on interest only - currently about £97k

So the £70k which she will get back when it eventually sell will then pay off a big chunk of the mortgage and at that point the plan was for her to have got her own smaller mortgage for the rest - which she had agreed in principle before the house sale fell through. This is another problem that we will encounter when it actually sells as we dont know if she will be able to even get a mortgage now!!

But just thinking about the present .. I've considered if we would be able to get a second mortgage in order to get our own home? so the value of the new property we would want to buy would be upto £150k - we have been told by J's dad that he would help us with the deposit so if we had to get 10% we could do.

Told you it was a mess!!

Thanks for your replies so far..

Senior_Paper_Monitor

.... and the value of the new property ?


and while your at it - who is mortage with ?

Also, is there a mortgage on old property - if so how much and who is on the deeds/mortage and on what basis ?

VIGILANT22

You need to speak to a whole of market mortgage advisor and present the whole story to them..here you only get opinion...with all the factors involved you require professional advice...

happyandlost

Thought as much, thanks for reading anyway.

Think I need therapy LOL! )

getmore4less

Looks to me like the ex does not want to sell so unless you get serious about forcing the sale nothing will change.

Could you move in untill it's sold to get your costs down

Easy to offer 10% to help out when you won't need to.

Since you own this place J's mum lives in but you don't live there then when you come to swap over mortgages(sell to her) you will have potential CGT liability.

What happened to the £50k where is that now.


All a bit of a mess get some proper advice.

VIGILANT22

happyandlost

Out of interest, did you take advice when doing this and if so, from whom?

JA1000

"i think from memory about £50k"

She's already had £50k, why can't you reduce the mortgage to £47k then go out and buy 'second home' mortgage on £47k will be nothing.