Advice please!!! Problems with mortgage companies...

the_dowg01

I recently bought a repossessed property with money borrowed from my dad to enable a 100% cash purchase on the previso from him that I then get a mortgage to pay him back.

I have gone for mortgage advice but have been told that I potentially might not be able to get a mortgage as it would be seen as debt consolidation due to owing the cash to my dad and not a bank.

I have an excellent credit rating and alot of equity in the house with it being a previously reposessessed property.

Why do the mortgage companies view it as debt consolidation and not a straight forward remortgage?????

Aaaagh.........

kingstreet

If you bought in your name, it's a remortgage of an unencumbered property, as there is no current mortgage. It is this which will put off some lenders.

I would imagine it's a little harder to do because it's an accepted way of laundering money. The asset has been purchased and now the proceeds are being layered/integrated into the financial system.

There are lenders who will look at this. I'd suggest a trip to your local whole of market/independent broker and be prepared to evidence the source and history of the funds used to buy the property.

kingstreet

You'll also probably have to wait for six months before you can do it as well.

the_dowg01

Thanks for the quick reply.

The house was bought in my name but with a legal charge added in my dad's name as it is his retirement lump sum that i have borrowed. It is all documented officially by our solicitor and I would have no problem producing it.

I was told by my mortgage advisor that we had to wait 6 months and this is almost up.

The worry is that we will get knocked back for the offers with the best rates.

I guess we'll just have to wait and see what they say....

kingstreet

the_dowg01 wrote: »

The worry is that we will get knocked back for the offers with the best rates

True. Many lenders won't want to offer you a mortgage. What you have to do is find the best mortgage for your circumstances.

You'd probably have got a better deal if you'd bought with a mortgage in the first place.

C'est la vie. No point worrying about that now.