Will I get a Mortgage with my Bank

1507daisey

Hi,

Need some advice if possible, I have a bad credit rating and am currently renting property and pay £1325pm. I have just inherited aproximately £170K and would like to get a mortgage of 100K and put the 170K down as a deposit, with my credit rating the way it is, I have a CCJ that I will obviously clear with my inheritance would I be able to get a mortgage with my Bank? I know the repayments on 100K would be about £651 pm based on 5.5% do you think the bank would offer me a mortgage based on the fact that I have so much to put down as a deposit? Obviously it will be half of what I'm paying on rent now, are these all factors that they would look into?

Any advice would be appreciated.

Thanks

1507daisey

I work full time for the NHS and need to buy a 3 bed house as my Nan wants to come and live with us, I earn £25k a year approximately, so realistically what would they offer me?

Thanks

beecher2

I don't get this. If you earn £25k a year, how can you afford £1325 a month for rent - that must be leaving you about £200/month to live on?

Can't see you getting 4 times your salary with poor credit, but go and see a mortgage adviser and see what they say. Might make more sense to pay off your debts and wait for your credit to improve?

Cannon_Fodder

HB... https://forums.moneysavingexpert.com/discussion/2374169

herbiesjp

How much is the CCJ for? and with whom?

You may have a few limited options, but I would suggest going via a whole of market adviser, as you do not want to end up doing more harm than good to your credit file.

Up you got an up to date copy of your credit file?

beecher2

The story's much more complicated than set out then. Surely if you've inherited this amount of money you shouldn't be relying on housing benefit to pay your rent? Clear your arrears, move to somewhere affordable and build up your credit file.

1507daisey

beecher2 wrote: »

The story's much more complicated than set out then. Surely if you've inherited this amount of money you shouldn't be relying on housing benefit to pay your rent? Clear your arrears, move to somewhere affordable and build up your credit file.

Hi, okay my Mum owns my Nans house, she is dying of Cancer and is leaving the house to me in her will, so I dont yet have the funds, and her and my Nan want me to sell my Nans house and buy a house, as the money I am spending on rent is far too much, I get Tax credits and working tax credits as well and I only get £12pm housing benefit at the moment, so by doing this they want to ensure I will never have problems again. I know I will lose my benefits etc and am not worried about that as I will be earning enough to pay a mortgage, especially if it works out half of what my rent is. The CCJ is for 1300, which I will obviously clear with the proceeds of the house when it is sold, and will have no other debt. They are eager for me to get the ball rolling as Mum only has weeks left, and my Nan wants to move in with me and help me care for my daughter who is 4 and will be starting school in September. I hope that sheds a bit more light on the situation.

beecher2

My heart goes out to you as I've lost my father and brother to cancer in the last 18 months. I'd really urge you to spend time with your mum at this time, and to make sure that wills etc are sorted out. It sounds very complicated as the house is owned by your mum at the moment, and yet you describe it as your Nan's house and yet seem to count the inheritance as yours at the moment. Sorting out wills takes a lot longer than you anticipate, and you'll need professional advice to make sure it goes smoothly. I can't see you being able to buy a house in the timeframe you describe.

1507daisey

To be honest I'm not in a hurry, if it was down to me I wouldn't even start looking into it, but Mum wants me to do it as its one of her wishes, the house is half owned by my Uncle and Mum, and my Uncle has agreed that the sale can take place and he doesn't want any proceeds from it (he has left it to me in his will for me and my daughter who is 4) my Nan lives in it at the moment, so I think it would just be a case of selling it and the funds being transferred, my Nan has paid most of it herself its just that the mortgage is in my Mum and Uncles name, as my Nan was too old to get a mortgage when she brought it, I think there is about 8K left to pay on it. I have been spending everyday with my Mum but they seem to get a bee in their bonnet and want to sort out all their affairs, when really its the last thing I can be bothered to think about at the moment. I don't even know if I would have to pay inheritance tax on it or what the threshold is, it all seems so confusing to me.

beecher2

Unfortunately it won't be as simple as this and you need to get wills etc sorted out. I understand you mum wanting things in order, but at the moment your mum only owns half of the house and you can't just agree amongst yourself how the money's divided up. You have to apply for probate, and all that entails.

Make an appointment with a solicitor and explain the situation to them. You need professional advice but are nowhere near the stage of applying for mortgages or looking at houses. Reassure your mum that things will be sorted out - do you have MacMillan nurses coming in as they can help reassure your mum too. You need to think of yourself too in all this and look after yourself (I hated when people said this to me, but it is true)

getmore4less

I am no expert but am looking into wills probate etc. at the moment.

I understand what you are going through,

You have a complicated situation and it may be best to get some initial solicitors and tax advice now, were solicitors used to draw up the will, they may be worth a visit.

If mums total estate is below £325k you should be OK from inheritance tax, is there other property and assets?

There is a problem with the uncle owning part of the house since that complicates things for capital gains tax.

With a house I think you have to get probate before you can sell, this can take time if things are complicated.

Who are the executors in mums will?


I would focus on your mum and tell her you are looking into it to get her to calm down(they do seem to create things to worry about don't they).

How big is the house, could you move in while things get sorted looking to get a bigger place later.