Unusual mortgage problem

CloudCuckooLand

If you are within 2 months of running out of money how will you afford the remortgage valuation and product fees..?

Same issue if renting it out, as you won't have funds for deposit/rent up front of the place you rent out.

Losing the house to repossession will be an even hudger loss...

shop-to-drop

Do you have any pensions or endowments etc that could be used to pay off the mortgage if you went interest free. That may help get a more affordable mortgage but you are right getting an income is essential whatever jobs you can get to start with. Selling the house yourself would not lose you as much as if it were repossessed so could be the better option. Hopefully it won't go far. Have you thought about getting lodgers/bed and breakfast, renting your garage? The house may be able to pay for itself if you let it.

irena58

shop-to-drop wrote: »

Have you thought about getting lodgers/bed and breakfast, renting your garage? The house may be able to pay for itself if you let it.

Renting is one option that we are considering. Thanks

Engeroosi

Surely the huge loss you have to take if you sell is better than losing your home, your credit rating for future and also the stability of your family!?

silvercar

With such an incredibly low LTV I wonder if another lender would fast track your application and allow you an interest only 25 year term?

A friend in a similar situation to you did that with Barclays a few years ago. As a Barclays customer already they gave him the mortgage with no real checks on current work. He was also someone who was crossing the consultant/ unemployed line. With a couple of years history as self employed, where the bank had seen money coming into his current account, they gave him a mortgage under their fast track - pre determined application scheme. Decent rate as well base + 1.99% interest only over 25 years.

GMS

silvercar wrote: »

With such an incredibly low LTV I wonder if another lender would fast track your application and allow you an interest only 25 year term?

A friend in a similar situation to you did that with Barclays a few years ago. As a Barclays customer already they gave him the mortgage with no real checks on current work. He was also someone who was crossing the consultant/ unemployed line. With a couple of years history as self employed, where the bank had seen money coming into his current account, they gave him a mortgage under their fast track - pre determined application scheme. Decent rate as well base + 1.99% interest only over 25 years.

Fast track is merely a method of speeding up the process by reducing the need for paperwork. Having no income would mean failing affordability. Declaring an income when there isn't one is fraud.

silvercar

GMS wrote: »

Fast track is merely a method of speeding up the process by reducing the need for paperwork. Having no income would mean failing affordability. Declaring an income when there isn't one is fraud.

I know, but Barclays definitely used to pre-approve mortgage applicants who banked with them. I accept it was a few years ago when getting a mortgage was like picking apples from a tree.

I had this conversation at the time, joking with my friend that they would give him a mortgage with no income and he said that they just looked at his current account that had showed regular payments in for the last few years and were happy to lend him the money. I think it was unique to Barclays.

GMS

PAL's (Pre Approved Limits) are still used by Barclays as far as I know. Other banks probably have similar systems.

Major issue for the OP to apply for a mortgage knowing they have no income though. I could imagine it being done by plenty of banks with 'advisers' happy to override systems for their bonus points.

whitewing

Would the OP be able to move to a 'consent to let' mortgage with the same bank or with a different bank, in preparation for letting out the house rather than selling it? Would that enable them to lower the monthly payments over a longer term?

kingstreet

whitewing wrote: »

Would the OP be able to move to a 'consent to let' mortgage with the same bank or with a different bank, in preparation for letting out the house rather than selling it? Would that enable them to lower the monthly payments over a longer term?

Sadly, their chances of consent to let are dramatically reduced by having their mortgage with HSBC. A number of recent posts on here suggest this is very difficult to come by, if not impossible.