Can I get a mortgage?

cherie83

My partner has been left a share of her aunts house and we are hoping to buy out her 3 other relatives share. The house has been on the market for nearly a year and no one has offered anywhere near the asking price even though we've dropped the price by 15k. We've been told that the solicitor has been putting off buyers by making out the work that needs to be carried out is worse then it is (long story), anyway the other relatives have said thay are willing to be bought out at a reduced price which would be great as the house has great potential and we are hoping to buy a house at some point but I'm worried that we wont be able to get a mortgage as I haven't been very credit active and my partner has just finished uni and isn't earning much, we also have no savings so we don't have a deposit. we would be able to make repayments but would anybody give us a mortgage? (90k needed and possibly another 5k for work that needs to be carried out)

lynzpower

how much do you guys earn between you?

Will.Power_2

You already own a quarter of the house, so you shouldn't need a deposit, but you will need money for costs. (You say the sols have been putting people off, so I suspect you're in Scotland, and I don't know what's involved there.)
There are plenty of lenders out there who'll give 3 or 4 times joint incomes.
If you think your income is enough, talk to an independent mortgage broker.
Remember that if there's no interest in the property at its current price, it's probably not worth that amount. Only offer your relatives what their shares are really worth. Get an independent valuation.

cherie83

at the mo neither of us are salaried but approx 14k and 12k, my partner already ownes a quarter of the house but apparently that doesn't matter
House was originally valued at 175k, relatives have agreed on 30k each so 90k
We live in the mids, the solicitor was names executor of aunts will so can't change dodgy solicitor (he deny's meddling)
There has been a structoral survey done. my partners income is going to go up by 10k in the next 18mths, does this make a difference to lenders?

lynzpower

a few things
1. have you seen a structural survey on the house?
2. I doubt that you would get mortgaged if neither of you have a perm job and your income is rather low

I could be wrong here though

chani1

I dont no if this helps but when me and my partner was looking for a house i was worried we would end up paying a high rate with a dodgy company as he has had 2/3 defaults and we were ftb with no deposit and he is self employed with no guarenteed income and we got a mort with northern rock at a good rate with extra to settle small debts.

cattie

don't really understand what the solicitor has to gain if you truly believe he is trying to put prospective purchasers off. If he was trying in some way to get the house for himself or relatives or friends at a knock down price then there would some logic.

Who is actuallty handling the sale? Usually it would be done through an estate agent & not a solicitor in England & an estate agent has a vested interest in getting the property sold.

As another poster mentions, usually the reason a house doesn't sell or get any reasonable offers is because the house is overpriced. Perhaps it's time to get another estate agent or 2 in to give realistic market valuations. Prices in some areas have dropped over the past year.

mi-key

One thing that may be worth discussing with your relatives.

If the house isnt selling at the moment, they are getting nothing from it. If you cant get a mortgage for the place, but you and your relatives own the house between you, why not offer to pay them a nominal rent ( say a couple of hundred a month each, so it would be costing you £600 per month ) until you are in a stronger position where you can buy them out by getting a mortgage.

They would be getting some income from it, while not losing any of their share, so if in a years time you could buy it, they still get their £30K, plus they have made a couple of thousand more in the meantime. All you have done is paid the same rent you would have renting from someone else, but you get the house to live in.

If they arent desperate for the money from the house ( and if it isnt selling anyway, then it makes no odds really as they cant get anything from it ) then this could suit everyone.

Obviously you would need to get a solicitor to draw it all up as a proper legal agreement, but from the sound of it your relatices are quite keen to help you out getting your first home.

MortgageMamma

I note you say you are not salaried, so how do you derive your income?

cherie83

Neither of us are salaried, we're paid weekly. Paying rent to the relatives untill we can defo get a mortgage is a good idea but they all need to money asap so they wouldn't go for that unfortunetly

LittleTinker

You can always get a Self Cert mortgage and your 1/4 share should be enough for a deposit.

Poor credit doesnt mean you wont get a mortgage it just means you might not get a great deal mortgage.
You may a high interest rate for example or have a longer tie in.