Complicated: advice despearately needed!

Kal

Hey there,

Hope you don't mind me posting but I have a really long, complicated mortgage problem and I need your help.

Ok, starting from the start. About 2/3 years ago my mother was forced to buy my fathers half of the house from the bank after my father had been made bankrupt. Due to this bankrupty her credit rating was less than perfect and she took what was a really bad mortgage deal as it was all she could get a the time and the bank put lots of pressure on her. Basically, the monthly repayments on a 25year mortgage (my mother is 53) is just over £750 a month on a £80,000 loan. It quickly came to the stage where she could no longer meet these repayments (she is self-employed and struggling to make ends meet). Her brother-in-law agreed to help. His suggestion, which was welcomed was that he would buy the house and charge rent at a much more affordable rate than the mortgage she is currently paying.

He planned to get a mortgage on £100,000; £80,000 would be used to pay the mortgage the remainder would go to my mother. In January he had a mortgage offer but his solictor was soo slow he had to apply for an extension of offer which he got, but the solictor still managed to drag along at a slow pace and the mortgage offer was lost (we have had advice from other solictors that this was unacceptable and we are considering our options here against this solictor). This was in June.

My uncle then scrambled to get another offer. As he is self-employed he wasn't able to find that many options but the broker did manage to get him another offer. Unfortunately this was from the same mortgage provider as my mother is with. After the legal wheels were put in motion, this mortgage company started making strange demands. They wanted to know if my mother and his wife were sisters (they aren't) and if they were they wouldn't give the mortgage. Then they wanted mummy (and my father) to sign paperwork stating that they would have no further claim on the house. Then at the end of last week they said that they had found out that my mother owed money to a few people (between £15-20K which she is on a payment plan for and never misses a payment). They then said that if she sold the house, her creditors could sue her for selling the house at a loss if she ever became bankrupt so they have asked for her to find a company to insure her against bankrupty.

Now, I've never heard of this type of insurance and we certainly can't find anyone who provides it. Her solictor is from today looking into the legalities of asking for this type of insurance.

Also, my mother hasn't made any mortgage payments this year. She couldn't afford the high monthly repayments and we thought that the mortgage was just around the corner so we could pay any arrears with the extra money that we would receive. Now, the mortgage company is trying to repossess the house (even though they know that my uncle is trying to buy the house). What is going on? Are the trying to scupper the sale so they can repossess the house and make more money?

As you can imagine this is a very stressfull opinion and if anyone has any advice I would be more than grateful. Many thanks and apologies for such a long post.

homer_j_3

Could I ask who the lender is?

Kal

Emm - don't really want to name any names at the moment - incase they might be reading the forums.

homer_j_3

i accept your reasons for not wanting to disclose but I feel that you naming them wouldnt have any negative effect.

If your uncle was going for a buy to let product and the rental income stood up, I dont see how him being self employed should have been an issue as most buy to let providers will take the rental income as the affordability. If the lenders he approached needed him to be earning x amount too then I would be asking questions.

Buy to lets are normally non regulated in the exception that when you are renting to family in which it becomes regulated - this may be a reason why the lenders are narrowed down.

This is the reason why I was asking about lenders so I could try and get a feel for who you are dealing with and how your broker is trying to structure the proposition with the lender.

Kal

Homer_J, I have pm'd you

homer_j_3

sorry been in the office all day so not had time to look until now. I have responded with regards to what I can tell you.

Was the product that your uncle applied for a Buy to let one as I cant see one in their range on their website? My sourcing stuff is at the office now so cant check that at the present. I may ask one of the other brokers to look if they have access to the lender and I will see if I can shed some light.

jennarothen

hiya is there no way that she can switch morgate and go any where else

also isnt there a loopoll in the law (sorry for spelling) where if over 25k there can write off some debt its been on the tv

might be a thought.

i dont know what it envolves.

best of luck