Mortgage help needed

Leigh-Anne_60

Hiya

Im hoping you guys can help me. My friend called me tonight, due to a few troubles she has decided to sell up & move up north, however youngest daughter has decided she wants to stay down south. The daughter was going to buy her own flat, but they have decided that it would be best if she could take over the family house. Thats the back ground here are the issues/figures.....

O/S mortgage of £125k, house valued at £165k. Friend is quite happy that they just clear the mortgage so will sell for £125k. So will instantly have a bit of equity (does it work like that?)

Both daughter and B/F are both just 21, with a combined salary of 30K. However he has only recently changed jobs, and this has caused issues with mortgage enquiries they have recently made with Halifax. So guessing any high st lender would be the same.

What other options do they have? Guess they need someone who go for higher lending multiples, who may not be that bothered about length of service.......Do such companies exist anymore? Would they be better off going to a broker ? Would a broker even be able to help

If your still with me, thanks All advise would be appreciated

LA

dimbo61

Why not ask your friend to look at consent to let and then rent the place to daugher and B/F for a year.
Save like mad and apply for mortgage in a year

LilacPixie

dimbos suggestion sounds the most viable. For example most (all?) lenders want a deposit even if buying for less than valuation so if they are buying for 130k then they will need a minimum of a 13k deposit plus money for legal fees etc.

GMS

If the daughter buys from the mother then the equity can be gifted for the deposit meaning no additional deposit needed. Most lenders will be ok with this.

Speak to a broker.

Leigh-Anne_60

Thank you all for your advice. I think my friend wants rid of the Mortgage so she can start again up north. However what you have said from above she might have to put this on hold for 6 months (the mortgage transfer, not the move)