Helping an old neighbours son

Ankatden

DH got asked over weekend by an old neighbour for some advice or suggestions and wrote this

Neighbours Son 30's something living at home, works for same state owned company for 13 years, suffers from epilepsy and has in the past been persuaded to take out loans etc and chucked it into fruit machines, as a result his mum manages all his finances and has ensured everything has been up to date and no one tries to sell him stuff he doesn't need.

Wanting to buy a flat at £105k, mortgage £90k and been turned down by Halifax with whom he has a cashbuilder account with his mum as signature and by Nationwide. All loans etc being repaid without problems even though some of lenders still uncooperative as always demand permission to even speak to her despite numerous letters.

Income in region of £30-40k.

Parents thought about getting mortgage in their names with him on it and ensuring wills etc and trust documents to ensure there is no debate if they pass away. Knowing one daughter quite well as she is a tenant of mine she would ensure compliance with will but parents are in early 50's anyway.

I alternatively suggested as he in a Public service union he will have lots of union partners who offer deals to members as I am slightly concerned that at Bank branch level as its out or ordinary then he will always get rejected rather than refer to head office.

Epilepsy is under control majority of time.

Any suggestions from brokers as to best way forward ?


thanks

Annisele

I appreciate that you might not know this (as he isn't your son!) but how much are his debts?

I strongly suspect that the epilepsy is completely irrelevant, and the reason for the decline is his debts - but it's hard to say without knowing what they are.

DVardysShadow

Annisele wrote: »

I appreciate that you might not know this (as he isn't your son!) but how much are his debts?

I strongly suspect that the epilepsy is completely irrelevant, and the reason for the decline is his debts - but it's hard to say without knowing what they are.

I would agree. There are some important ports of call before going any further - look at them in this order

• Does he have a 15% deposit?
• Does he have any debts [not arrears, but debts]?
• If he has 15% deposit and still has debts, why?
• Are his credit files clean?

Ankatden

Annisele wrote: »

I appreciate that you might not know this (as he isn't your son!) but how much are his debts?

I strongly suspect that the epilepsy is completely irrelevant, and the reason for the decline is his debts - but it's hard to say without knowing what they are.

I think his debts are pretty small and perfectly manageable what seems to be the issue is the Money Builder account taken out when he was a kid that his mum manages to ensure he doesn't get sucked into taking out stupid loans.

Quite a few will end early next year so don't see there being a big debt problem.

Family are straight as in no reason to B/s as was a chance meeting.

I have suggested that they have a look at his credit file and will reiterate it as that may show up any issues.

Thrugelmir

As "mum " manages his finances. This is bound to be registered on a central credit agency.

In the event that "mum" is no longer capable of fulfilling this function who else can be appointed as a trustee.

Not sure that epilepsy is of any relevance to his financial management skills. Though previous history suggests that he potentially could pose a risk in the future. Human nature determines which camp you are born into. Something which underwriters factor in.

themull1

if his mother controls all his finances to make sure he doesn't spend his money, he shouldn't be getting a mortgage. Epilepsy doesn't make you mismanage money.

TrickyDicky101

Is he really capable of living on his own? If his mum still manages all his finances when he's in his 30s it suggests to me he isn't capable. I agree with the mortgage companies' decisions.

Bullfighter

If he is such a financial liability, why on earth would he want to take on such a risky leveraged bet on housing?