Can i do this? Have i benefited off the budget?

Skint_Ben

I currently live in a property with my girlfriend. Mortgage is in my name at £120k, house is worth £160-165k.

We have £30k debt on credit cards and loans. my credit rating is very bad (CCJ) Hers is perfect. If i could, i would remortgage. But, as my LTV is already 75%, with my credit rating i cannot get a remortgage anywhere.

What i am thinking is, now that stamp duty has been abolished for houses under £250k, assuming my girlfriend can get a mortgage, would i be ok to 'sell' 'my house' to her? hopefully she could get a 90% mortgage, we could pay all the other credit off, and in the future at some point try and add me to the mortgage.

I'm thinking that apart from a few hundred pounds for solicitors etc there would be little cost involved, maybe the new mortgage lender would want a survey.........am i forgetting anything important? is there a flaw to my plan that i haven't considered?

Thanks in advance

Cannon_Fodder

'WE' have debts on card...would she get a decent mortgage? As your LTV is 75%, it is likely to be a better deal than her 90% one.

In addition to solicitors fees, there may be a mortgage arrangement fee, plus the survey/valuation might not agree your place is worth £160-165k, so not enough to clear the debts.

And that 'we' still troubles me, as to whether she'd get approved.

Say its likely to cost £1k in fees etc, why not just put that £1k against your worst debt and then from the saving in interest payments start the snowball effect?

JA1000

Does she earn just under £40k if not forget it. Charge her rent and pay back the cards.

Skint_Ben

The debts on the cards are in her name (because i can't get credit), but would be getting paid off with the remortgage. Like you say, it's not 100% she can get the mortgage but for now i'd like to assume she can as we need to work out if its plausible before we find out if its possible.

The 1k of fees you speak about i don't have, it would be borrowed until the new mortgage money came through (the 30k wouldn't have to be completely paid off, but as much as possible would be nice) My/our monthly repayments would go down significantly, which would be nice as we're struggling a little bit at the moment.

Another big point is the debt in my girlfriends name is a big worry to her and a great cause of stress when moneys tight, if it was all gone and combined into one managable monthly amount i know she would be a lot happier about the situation.... it would also leave us a good few hundred pounds a month better off giving us a little bit of spare cash to save up for nice things, or to put something aside for the winter months when work drys up for me a bit.

It hasn't been unknown for us to transfer money from a credit card to bank account just to pay other credit card bills etc, so although i would love to snowball my debt away, i am in serious danger of snowballing the wrong way if i dont do something drastic soon

Skint_Ben

JA1000 wrote: »

Does she earn just under £40k if not forget it. Charge her rent and pay back the cards.

that really makes no sense at all?

also, i'm not really asking if she 'can' get a mortgage, otherwise i would have put details like earnings etc up

cheers anyway

Cannon_Fodder

The debts being in her name will stop her getting the mortgage.

If you don't even have £1k for fees, this is a non-starter. Any lender will spot extra borrowing.

The £40k comment, is roughly what she would need to earn to obtain a 90% mortgage on that value property.

TrickyDicky

If she has debts in the region you're talking about, there is almost definatly no way she'd get a mortgage, so even if your idea was feasible (which I dont think it is anyway) there would be no way you could carry it out!

JA1000

Skint_Ben wrote: »

that really makes no sense at all?

also, i'm not really asking if she 'can' get a mortgage, otherwise i would have put details like earnings etc up

cheers anyway

If you weren't asking if she can get a mortgage what was this comment supposed to mean?

"assuming my girlfriend can get a mortgage, would i be ok to 'sell' 'my house' to her?"

Skint_Ben

JA1000 wrote: »

If you weren't asking if she can get a mortgage what was this comment supposed to mean?

"assuming my girlfriend can get a mortgage, would i be ok to 'sell' 'my house' to her?"

this means........'Imagine if you will, that my girlfriend already has a mortgage offer, or the ability to obtain one. In this situation, would the fact she already lives with me, and the fact i would continue live with her after the transaction, affect the transaction in any way, in regards to her being a first time buyer, and buying a house she already lives in.'

if i was asking if my girlfriend 'could' get a mortgage, i would not ask you to assume she already had one.

i feel like i'm really getting off on the wrong foot here. i understand i am asking for advice, and really dont want to appear rude, but, well, i don't really know what to say. its hard for me to point out that you are not actually answering my question without sounding rude...i dont mean to be but dont really have a way with words

Skint_Ben

Cannon_Fodder wrote: »

The debts being in her name will stop her getting the mortgage.

If you don't even have £1k for fees, this is a non-starter. Any lender will spot extra borrowing.

The £40k comment, is roughly what she would need to earn to obtain a 90% mortgage on that value property.

I could borrow/earn the money to do this without adding further borrowing that would show to her credit file.

if you look at the 40k comment it actually says she would need to earn less than 40k, i was proably a bit flippant due to having a second reply in quick sucession answering a question i'd just asked......sorry about that

dimbo61

Sorry Ben but you would be better off going on the debt free board and not the mortgage board.
Your girlfriend wont get a mortgage because she has huge Credit card debts and also needs to earn £40K a year to get a £160/165K mortgage 4X income plus the 10% deposit you dont have.
You need to carry on paying the mortgage at what ever rate it is and start to clear your debts ( debt free board) GOOD LUCK