Help and advice needed / possibility of remortgage

Tedp

Hi everyone,
I hope you will be able to advise if there is anyway we can solve the following problem.

I will try to keep this as brief as possible:

Following her divorce girlfriend purchased the ex marital home jointly with a friend. She borrowed money off the friend for the deposit (I wont tell you how much interst the friend is charging her as you wont believe it) and they have a joint mortgage, but she is responsible for all repayments. There is a declaration of Trust and she has until March 2011 to pay back the deposit money to the friend or they will become entitled to 50% of the equity in the house.

Mortgage is currently £225,203.09 (interest only) including early repayment charge.
The personal loan including interest is £95,000.00
Therefore currently the total debt she has is £320,203.09

Girlfriend decided that the best way to pay back her friend would be to sell the property and pay them back & then use the equity as a deposit to buy a property with me.

The property is a 3 bed detached house in a very good area and is currently being marketed at £449,000.00. But even though there have been numerous viewings the house hasnt sold yet & the clock is ticking. There have been a few offers at around £405,000.00 to £410,000.00, which the gf rejected. And there has been 1 serious offer of £435,000.00 which gf would have accepted if the offer hadnt been withdrawn as they didnt realise how much the early repayment fee was on their Mortgage!!!!!

Estate Agents say they could sell the property tomorrow if the price was dropped to around £405,000.00 to £410,000.00 but at the moment gf doesnt want to consider this.

However I think she should try to keep the property.

There is substantial equity in the property & I was wandering if it would be possible for gf to remortgage the property with me & borrow enough to be able to pay off the loan to her friend.


I earn just over £31,000.00 pa,
girlfriend starts new job on Monday earning between £12,000.00 to £13,000.00 pa.
And I will be able get together approx £30,000.00 cash.
Neither of us currently has any other debt.

Also the friend who lent her the money says they want the money asap and have also suggested that we remortgage the property, & pay them off.
They have found the following company on the internet that they say can arrange the finances for a self certified mortgage for a very competitive rate;Wardley financial services.
They say that the company have a loop hole which they can use to sort the finances out and they have a firm of accountants who will sign off the income for the mortgage, and for a £320k mortgage interest only they have quoted £850 a month - this smells a bit fishy to me.

Sorry for the longwinded post, and all help and advice would be greatly appreciated.

Cheers

TP

beecher2

I can't quite decide if this is a real post or not as it sounds very much like fantasy world spam. If not your gf should sell at £405,000 - in my opinion there's no debate. You're not going to get a £320k mortgage on the wages you're both on and how would you afford it anyway.

getmore4less

Summary.

Read the trust agreement very carefully to exactly what the terms are,
50% of equity should wipe out the loan if not then she has been stitched up.

£225k Mortgage.
£95k Loan.

£449k top value
£410k realistic price.

£185k equity(realistic)
£92.5k 50% of equity so depending on the exact term waiting might be a better option.


Without the mortgage rate and the loan rate it is not possible to comment further, the monthly costs are critical to deciding to sell or hang on.


How did she get the mortgage in the first place?
How can she afford it?

Little chance of a remortgage for £290 k on a jojnt income of £44k at 6.6 multiple.

Self cert at 3.2% there would be a queue.

herbiesjp

No self certs available.

FraudBuster

Loop hole = Mortgage Fraud.

shortchanged_2

Sounds like your GF has got a damn fine friend there.:eek:

So they get a whopping pay back on their loan and are not contributing to the monthly payments either. Fair play your GF has been taken for a ride by this so called friend.

This so called friend isn't a loan shark during the daytime hours are they?

TrickyDicky

Sell the house.
Pay back the mortgage and loan

Move somewhere you can really afford.

How the hell did your GF get a £225k mortgage on 12k PA. is the friend also named on the mortgage?