Can't get a £35k mortgage with a £60k deposit

LINDANO · 15 February 2011 at 2:01PM

I have a 110k mortgage, and I need to sell my house as I can't afford the mortgage any more since my adult family all married one by one and moved out, and life changed hugely. Of course this was always on the agenda, kids have their own lives to live. As my mortgage is only £100 less than my monthly salary, I always assumed that I'd sell and re-purchase.but I stupidly missed ONE payment last year on the Mortgage, when I was off ill, which I paid back over 8 months.
I now find that even though I intend to put £60k deposit down on a new property I cannot get a mortgage for the £35k I would need to buy even a half decent house in this area, and by that I mean a small 2-3 bed ex-local authority still, but on an estate this time, but with big enough rooms to let me keep my animals..
It's breaking my heart to lose this house, an ex-local authority property that I have spent over 10 years extending and doing up to the nines, whilst bringing up my 4 kids alone.
The Estate agents are all insisting I must rent or buy on shared ownership as this is the only way forward for 'someone like me'.
They looked at my Experian report and insist I am un-mortgageable for at least 12 months. I can't hold on for 12 months.
I have a new partner of 18 months who has a good credit rating and would get a mortgage. He wants to move here to live together. But will not', naturally enough, contribute to the finances here for now, till we are living together. He has his own bills.
He has a property of his own, fully paid off. This property is for his adult kids, who sadly hate our relationship, and he absolutely does not want to use it to raise the necessary funds till I can get a mortgage, and I see his point there, but we've been advised that my credit rating would prevent him from obtaining a mortgage for a share of the house we would purchase, and the only way forward would be for me to 'gift' him MY cash till it's bought! What??? That would be so dangerous for me because of his kids. If something happened to him straight away then I'd be done for, as they'd are clear they'd ensure I got nothing. If the house was bought in his name initially it would go to them. (I do not want to re-marry either)
The world has gone mad I swear!
I have 5 large dogs of varying ages, and 4 cats, these pets are like my kids to me, and we live in the country.
We will need to move into a town- that's fine, I accept that, but I am going to end up losing most of my pets as I won't have the space in any affordable house to keep them all if I need to do
Shared Ownership. Those houses are tiny.
I don't want to rent. Thats good money after bad, and I may never get a house of my own again.
Far from me being 'responsible', saying ok, I need to sort this before things go very badly wrong, I cannot find any way to turn that isn't bad for me and my animals. No-one dare say 'you can always get animals another time' - seriously! Heard that. Not funny.
What a nightmare life becomes in a few short months.
I am likely going to end up off work through stress because of all this, as I think I'm going mad with panic, so what now???
Rambled I know ---Help.

Tixy · 15 February 2011 at 2:05PM

Hi
Have you actually spoken to an independant mortgage broker to see if they might be able to find you a mortgage even with your missed payment. It might not be at the very best APRs that the high street banks quote but people do manage to obtain mortgages with defaults on file so 1 missed payment would not, I would have thought, make it impossible.

If you can get one even at a quite high APR you might hopefully be able to switch to a cheaper deal once the blip on your credit file is a bit older.

JasX · 15 February 2011 at 2:07PM

Keep house, rent it out, use rental income + salary to rent a smaller place for yourself.

bugslet · 15 February 2011 at 2:10PM

Definitely speak to an independent mortgage advisor - they will look at it from a far different perspective than estate agents.

adecor · 15 February 2011 at 2:12PM

Would you consider renting some of your rooms out, which could get you sorted out for the next 12 months

brokeinlondon · 15 February 2011 at 2:19PM

Definitely speak to an independent mortgage adviser, what do estate agents know about finance and credit reports?! I can't see how one missed payment would make you completely un-mortgageable.

Also I second adecor: consider having a lodger or two! We're not that bad, honest

CH27 · 15 February 2011 at 2:21PM

Am I reading this right? You have £60,000 cash available to use as a deposit for a new house?
Why don't you pay a lump sum off your current mortgage to reduce your payments & stay in your current property until your credit file is in better shape?

Tixy · 15 February 2011 at 2:27PM

CH27 wrote: »

Am I reading this right? You have £60,000 cash available to use as a deposit for a new house?
Why don't you pay a lump sum off your current mortgage to reduce your payments & stay in your current property until your credit file is in better shape?

I think the £60k is the equity in the current house.

CH27 · 15 February 2011 at 2:28PM

Tixy wrote: »

I think the £60k is the equity in the current house.

Oops. Silly me:D

dancingfairy · 15 February 2011 at 3:16PM

I'm not really sure there is a mssive need to panic to be honest.
You need to get the opinion of a whole of market broke to see what they can offer you. If you can't afford a new place then maybe you will have to sell now (before the place gets repossessed if you stop making mortgage payments) and rent for a short while. I appreciate it's not idea but it's not like you will end up on the street - hopefully you will only be renting for a short while.
Apart from that can you move in with your other half and pay a share of the bills?
Have you spoken to your mortgage company to see if they will give you a mortgage on a new house? will they let you go interest only for a while or give you a payment holiday while the house is up for sale?
All is not lost.
df