Mortgage Advice

Raggs_2

I wonder how possible it would be for your parents to gift you the whole house, that way you have the benefit of a very good LTV. But I don't know what would happen with the mortgage in this situation, nor for possible Deprivation of Assets issues, and CGT issues.

Plus you need to investigate if there are any early repayment charges on the mortgage.

To be paying 900 a month on the mortgage it must be very very high interest (around 10-11%) which is ridiculous. But then if they have bad credit, then I suppose this explains it.

Kaded

Raggs wrote: »

I wonder how possible it would be for your parents to gift you the whole house, that way you have the benefit of a very good LTV. But I don't know what would happen with the mortgage in this situation, nor for possible Deprivation of Assets issues, and CGT issues.

That sounds interesting.

I have no deposit, I've just spent quite a bit on a rent deposit and furniture for it. Without a deposit am i wasting my time? even though the mortgage is only for half the property?

not_tonight_josephine_2

As I understand it, you cannot take out a mortgage on the property unless all parties named on the deeds (ie your parents) are also on the mortgage. The reason being that the bank cannot reposess the house and evict your parents if they own half of it but are not party to the mortgage agreement, and obviously they cannot just reposess your half.

So I'm not sure what you're suggesting is possible at all, and if you make a joint mortgage application with your parents then their poor credit ratings may be an issue.

SouthCoast

and have had to remortgage several times (i believe 3 in total) to release equity.

Living beyond their means. Check out the Debt Free Wannabee Board.

And:

Facing the prospect of repossession can be frightening, but it’s important to remember that you are not alone. There is a lot of help available from government, from lenders and from advice agencies. The information here will give you the tools you need to prevent your home being repossessed. You'll also find stories from some of the 330,000 homeowners who have already received help and advice.

http://mortgagehelp.direct.gov.uk/default.aspx

Kaded

I thought as much.

What other options are available to me or my parents to reduce the monthly costs?

Has anyone any experience with these companies that buy your house and rent it back to you?

I really don't want a financial association with my parents as i'm worried it'll affect my own credit rating.

Raggs_2

Get your parents finances together, go to the Debt free wannabe board and fill out an SOA (statement of affairs).

When you say your parents can't get a better mortgage deal, have you been to an mortgage advisor (whole of market i think is what you need, though I'm not sure) to confirm this? The large mortgage repayments really is the kicker(check out the details, mortgage length, interest etc).

But even so, they may be able to get by. Check out the DFD board, and see if they can help.

Kaded

SouthCoast wrote: »

Living beyond their means. Check out the Debt Free Wannabee Board.

Living beyond their means?

They remortgaged 3 times due to the following:-

1. The house started sinking, they needed money to sort it.

2. They needed to replace the roof and guttering system.

3. They got a conservatory (granted this one was avoidable).

Before they remortgaged for the first time they owned the house outright. I know you're trying to help, so with all due respect, I'd appreciate any opinions to be based on facts, not assumptions.

Kaded

Raggs wrote: »

Get your parents finances together, go to the Debt free wannabe board and fill out an SOA (statement of affairs).

When you say your parents can't get a better mortgage deal, have you been to an mortgage advisor (whole of market i think is what you need, though I'm not sure) to confirm this? The large mortgage repayments really is the kicker(check out the details, mortgage length, interest etc).

But even so, they may be able to get by. Check out the DFD board, and see if they can help.

Thanks, i'm only going off what my mum has told me, so i'll go through their finances myself and see a mortgage advisor.