Joint to single mortgage

stokegal

Hi all

I'm posting this on behalf of my cousin so bear with my ramblings...

2006 Cousin purchased house with friend
2008 Cousin met fiancee, had baby and moved in with her, he carried on paying his half of mortgage and rented his room out
2010 Cousins friend moved out and let brother stop in his room rent free
2011 Cousins room became free so he asked friend to sell but the house was in negative equity so friend said no. They agreed that cousin, girlfriend and baby would move into the house and would pay friend £100 extra towards the mortgage. Friend agrees

Then last Thursday friend say he's not paying mortgage anymore, selling is not an option so cousin offers to buy his friend out. Friend agrees but the mortgage company refuse to let cousin have the mortgage on his own, girlfriend on the mortgage is not an option as she is bankrupt.

The house is worth 75k
The outstanding mortgage is 68k
There is a 8.5k redemption fee on the property from the builders

The mortgage company say they will only lend cousin a mortgage up to 50k as his salary is only 13k basic plus commission, ave 20k / year and he has an unsecured loan of 10k

Cousin can not remortgage as there is a £1500 penalty fee on current mortgage and the house is in negative equity

I know there is probably nothing else that he can do except get another person on the mortgage but I thought I would ask in case I've missed something.

Thanks