Please please help, mortgage help needed desperately

mydisclosure

Yorkie1 wrote: »

I agree with all the other posts; just to confirm the answer to one of your questions, a loan is rarely acceptable as a deposit; it will be used to reduce the lender's assessment of what they will lend to you so it becomes self-defeating.

Yorkie1 i myself thought this was a contradiction in terms when my partner asked me if he could require a personal loan which he could use as the deposit. I guess we just thought after taking his debt into account we could still borrow enough to secure the property. It seems without his debt he could potentially borrow around 90k and were looking to obtain a 40k mortgage. He'll be debt free in around two years, it just feels like a lifetime but I know it isnt. Thanks for your reply

mydisclosure

DVardysShadow wrote: »

You chose to tell us. You invited comments. You are welcome to dislike my comment. I assume as you reject my comments you are remaining intent on staying with that debt. In which case, you needn't have posted.

I reject your comments, i invited your comments? I was asking for advice, helpful advice. I wanted to know what our options were not be judged on something you know nothing about. Simply advising us to get rid of the debt would have been more helpful than your insensitive judgements about our situation.

Yorkie1

mydisclosure wrote: »

He'll be debt free in around two years, it just feels like a lifetime but I know it isnt. Thanks for your reply

None of us knows what lending practices will be like in 2 years' time. But you should be prepared for it taking a bit longer than 2 years to repair his credit score. Lenders will obviously be pleased that he has paid off the debt, but will be concerned that the debt was incurred at all - and will want steady evidence over a period of time that that will not happen again.

I don't want to rain on your parade, and it may not be too bad in 2 years' time, but don't pin your hopes on it being absolutely hunky-dory as soon as the debt is paid off.

mydisclosure

Yorkie1 wrote: »

None of us knows what lending practices will be like in 2 years' time. But you should be prepared for it taking a bit longer than 2 years to repair his credit score. Lenders will obviously be pleased that he has paid off the debt, but will be concerned that the debt was incurred at all - and will want steady evidence over a period of time that that will not happen again.

I don't want to rain on your parade, and it may not be too bad in 2 years' time, but don't pin your hopes on it being absolutely hunky-dory as soon as the debt is paid off.

Without going into too much detail he managed to transfer his credit card debt of 3k to a 0% interest credit card, does this mean he has a good or bad credit rating for accepting the debt? Its all pretty mind boggling.

His other loan has always been paid on time so does not help to show he has good credit because he never missed a payment? Or am I completely off the mark? He reduced the term of the loan which increased the repayments per month which eats into a third of his wage but he has no other outgoings apart from rent to his sister/brother in law which is very low. If he pays the loans off earlier he receives a penalty for doing so which is really high - I suppose thats how some of them manage to catch and keep you hooked in.

Thanks again and honesty is always the best policy, no point in being blinkered!

DVardysShadow

mydisclosure wrote: »

I reject your comments, i invited your comments? I was asking for advice, helpful advice. I wanted to know what our options were not be judged on something you know nothing about. Simply advising us to get rid of the debt would have been more helpful than your insensitive judgements about our situation.

You came here, you posted, you gave us information. And you take umbrage at a comment based on the information you gave. £600/month is the same repayment as a small mortgage. Now, if you are living in rooms, I can't imagine how you would accumulate that debt. And I can't imagine how you would could be wanting to do something different for very long at all without realising you need to pay it down. The other point which I did not expand on is that you regard it as a debt of £600/month - ie you just carry on paying a monthly amount, that is your debt. Most people would look at it as a debt of so many £££ and would know how much they need to find to pay it off.

True enough, you haven't told us why you are in your situation, perhaps more help would be forthcoming.

mydisclosure

The mortgage is going to cost us £230 a month based on a 40k mortgage having put down a 5k deposit. His debt is around 600 a month leaving 600 a month spare after paying the 'mortgage' and his loans. If he secures a 5k personal loan (which he has been offered despite his high repayments - i know this isnt good) they said it would cost £160 a month over three years, interest being £600 extra. I dont know how all this is scored or put together financially. He will be debt free in two years and my debt consists of my student loans and nothing else.

I said I had lived out of rooms mainly due to having to move out when I was 16 as my mum moved abroad. I had a mortgage when I was 18 but due to a break up I wasnt in a position to buy him out at that time so I have reverted to sharing with friends, renting out rooms etc and currently I living in a uni friends house who has kindly offered to help me decrease my outgoings so I can survive on student funding and look to obtaining a job during the summer if at all possible. My partner has moved a few times and has equired debt due to previous relationships.

pararct

mydisclosure wrote: »

The mortgage is going to cost us £230 a month based on a 40k mortgage having put down a 5k deposit. His debt is around 600 a month leaving 600 a month spare after paying the 'mortgage' and his loans. If he secures a 5k personal loan (which he has been offered despite his high repayments - i know this isnt good) they said it would cost £160 a month over three years, interest being £600 extra. I dont know how all this is scored or put together financially. He will be debt free in two years and my debt consists of my student loans and nothing else.

I said I had lived out of rooms mainly due to having to move out when I was 16 as my mum moved abroad. I had a mortgage when I was 18 but due to a break up I wasnt in a position to buy him out at that time so I have reverted to sharing with friends, renting out rooms etc and currently I living in a uni friends house who has kindly offered to help me decrease my outgoings so I can survive on student funding and look to obtaining a job during the summer if at all possible. My partner has moved a few times and has equired debt due to previous relationships.

Has this mortgage you had at 18 been settled? If not it puts a different light on things.. That lender may still be able to pursue you for what is owing.

DVardysShadow

Rent the property. Buying is not realistic at the moment, renting may be. So if you rent, the owner has money coming in, which eases their problems and makes it difficult to sell, because they have to get you out and also risk not selling and having no rent come in. Use the time to get your finances on an even keel.

If you are intent on buying, get the money from brother in law, buy, take a loan to pay him back. But you will be screwed if brother in law gives the money as a loan rather than as a gift.

mydisclosure

pararct wrote: »

Has this mortgage you had at 18 been settled? If not it puts a different light on things.. That lender may still be able to pursue you for what is owing.

Pararct it was his family home (he had grown up in that house) so I took a small pay out and signed the house over

mydisclosure

DVardysShadow wrote: »

Rent the property. Buying is not realistic at the moment, renting may be. So if you rent, the owner has money coming in, which eases their problems and makes it difficult to sell, because they have to get you out and also risk not selling and having no rent come in. Use the time to get your finances on an even keel.

If you are intent on buying, get the money from brother in law, buy, take a loan to pay him back. But you will be screwed if brother in law gives the money as a loan rather than as a gift.

We havent the heart to take the money and we would have paid him back anyway. Renting seems like dead money so the only option may be to stay put where we are and save for our deposit ourselves