Low Income - good equity and guarantor - can I get a mortgage

sunshinecorner

Recently split with my partner of 17 years and need to raise the finance to buy him out of out house as I wish to stay in the property to maintain continuity for my son, 6 years old. My problem being that I am on a low income so concerned that our current mortgage provider, Nationwide, may not be able to assist me. Our property is valued at £185,000 (although before hosue prices dropped it was valued at £210,000), our currrent outstanding mortgage is £80,000. I need to get a mortgage /remortgage? for approx £120,000. However currently I only work part time due to the age of my son, so part time hours and tax credits add up to approx £14750pa. We have never defaulted on any payments and have a good credit history, plus my father has offered to stand as guarantor if he fits the criteria the mortgage provider requires. As my son gets older I do aim to take on more hours and by the time he is leaving primary school I aim to be working full time. Will there be any affordable lenders in the current market that would consider my situation?
Any advice would be greatly appreciated.

Thrugelmir

On your income no, a mortgage of £120k isn't realistic,

Have you agreed maintenance payments for your son?

alleycat`

Assuming you could get a mortgage for that amount (for arguments sake).

25 years @5% you'd be paying £700 a month approx.

That leaves you with about £500 a month to live on for everything else.

It isn't affordable if you expect to have any quality of life unless your ex-oh is giving you a decent amount in child support?

Assuming he does (i'm not judging btw, just making a comment) does that impact your other bits and bobs (tax credit and child support?).

It just doesn't look very realistic.

sunshinecorner

Thrugelmir wrote: »

On your income no, a mortgage of £120k isn't realistic,

Have you agreed maintenance payments for your son?

No maintenance agreed as yet - it still all very new and raw so really just exploring options - have thought about asking to settle half the equity now and half when my son reaches 18 but don't know if this is possible.

Thrugelmir

sunshinecorner wrote: »

No maintenance agreed as yet - it still all very new and raw so really just exploring options - have thought about asking to settle half the equity now and half when my son reaches 18 but don't know if this is possible.

Consult a solicitor and seek advice. Primary responsibility of any court is a child's welfare first. Stability being a key consideration.

sunshinecorner

alleycat` wrote: »

Assuming you could get a mortgage for that amount (for arguments sake).

25 years @5% you'd be paying £700 a month approx.

That leaves you with about £500 a month to live on for everything else.

It isn't affordable if you expect to have any quality of life unless your ex-oh is giving you a decent amount in child support?

Assuming he does (i'm not judging btw, just making a comment) does that impact your other bits and bobs (tax credit and child support?).

It just doesn't look very realistic.

The whole situation isn't realistic but thats life - we haven't agreed maintenance as yet - I can cover all costs as they stand with a small amount of surplus plus then there is the maintenance on top - I do intend to increase my hours once this hurdle has been passed - I am also looking into the possibility of not borrowing as much and coming to some sort of agreement that would mean I can pay 50% of equity owed to him now and the other % when my son is 18.

Thrugelmir

sunshinecorner wrote: »

The whole situation isn't realistic but thats life - we haven't agreed maintenance as yet - I can cover all costs as they stand with a small amount of surplus plus then there is the maintenance on top - I do intend to increase my hours once this hurdle has been passed - I am also looking into the possibility of not borrowing as much and coming to some sort of agreement that would mean I can pay 50% of equity owed to him now and the other % when my son is 18.

You should keep in your mind that at some point you may have to sell the property to pay off your ex partner when your son leaves full time education. So you need to think and plan ahead for yourself.

Extending the mortgage term would reduce the monthly outgoing.