Loans of £20,000 for a house

harviek123

Post Deleted

CLAPTON

makes no sense

you need to get a mortgage or a joint mortgage to buy the house?
who with?;
they will take into consideration your loan
why not get a bigger mortage

how much mortgage do you need


some real facts would be good here

harviek123

Post Deleted

CLAPTON

on an income of 18k there is no possiblity of anyone sensible lending you 15k

however maybe not all banks are sensible

also can your sister buy out her ex for 15k i.e will the mortgage company agree to give a new mortgage solely in her name (is her income sufficient and is the equity OK)?

harviek123

Post Deleted

ViolaLass

rwan wrote: »

No the mortgage company will not give a new mortgage to her solely in her name as her income is not enough for the mortgage on her own. they both have 15k in the house.

So surely you just go for a joint application with your sister which will be passed subject to income and credit history. If she earns the same as you, say, then you should be OK (subject to credit history). Is there a reason why that is not the option you've gone for?

harviek123

Post Deleted

ViolaLass

There is just no chance that you will be given a loan for £20k when you earn £18k. None.

A mortgage might be possible. How much is the house worth, what's it mortgaged for at the moment?

Is it a good idea? Really potentially not. What if you want to buy a house of your own later? What if you lose your job? What if you sister doesn't want to sell in five years time? What if she gets another partner and has more children and that spare room is no longer available to you? What if you and your sister fall out?

As far as I'm aware, your sister would be entitled to stay in the house until the children are 18. I can understand why she would prefer a clean break but why should the father of her children not contribute to their upbringing? Why would there be constant arguments about the equity? Any court would support him not getting the money back until the children are 18.

This seems a potentially complicated solution to a problem that is simple.

chalkie99

in 5 years time I think it would be a good springboard to buy my own house.

But only if you can sell it and then what will your sister do?

If she cannot buy her own place outright then she, as joint mortgage holder, will simply refuse to sell and you will be stuck.

Also, what happens when your sister meets someone else? Or you meet someone?

I can see you are trying to help both yourself and your sister but family arrangements like this rarely work out in the long term.


Additionally you say:

I'm also at a benefit with a job that I know will be around for a long time

I hope you are right but many people have thought this only to proved wrong .

Life is hard but I think you have to let your sister sort out her own circumstances and concentrate on yours separately.

CLAPTON

for you to 'buy out' the ex and transfer the deeds from his name to yours, requires the agreement of the mortgage company.

they will require who ever is on the deeds to be part of the mortgage

they will treat this as a 'new' mortgage and will apply the normal lending criteria

otherwise he will have your 20k but still be the legal owner of the house

in any event no-one will give you a 20k unsecured loan on an low income of 18k: the only possibility is a joint mortgage with your sister;

as already pointed out this raises all sorts of other problems about how you exit the arrrangement when you wnat your own place or she wants her own place etc.