Remorgage with mum's help.

annie52

Apologises if previous thread deals with this situation.
My son has been separated from his wife for 18 months, she left the marrital home and has not contributed to either the morgage or running costs since leaving. His fixed term with santander finishes in september 2011 and he is looking to remorgage so that he can remove her legally from the deeds. Santander have refused to remorgage him as he would be the only income provider, although he has pointed out to them that this has been the case for the last 18 months and had not defaulted.The computer appears to say NO and that is there policy. His house was recently valued at £160,000 and he needs a morgage for £135,000. He has approached Nat West and they will lend him £120,000 as a solitary borrower. My question is would they consider taking my NHS. pension as an income if I were apply as joint morgagee with my son to make up the short fall.

somethingcorporate

Only the mortgage provider can answer that.

It's not really a computer says no question, he evidently does not have the income to support that level of mortgage without the bank getting twitchy at the level of risk he is incurring.

How much does he earn? Other lenders may be an option although when we were mortgage shopping Natwest were by far the most generous at the AIP stage.

annie52

He earns £32,000 before tax and as I said has been paying everything on his own for the last 18 months with no problems. The new fixed rate that he was hoping to get with santander would also be cheaper and therefore more affordable but they are not interested in keeping him as a customer it seems. I am retired but I own my house which is worth approx. £200,000 so if I were to be considered the morgage would be covered.

somethingcorporate

Unfortunately a £200k asset does not pay the mortgage - it will be down to income. Play around with some calculators, at a stretch your son could probably borrow about £130k on that salary, but depends on the mortgage company.

What is your income? It could be possible to explore the joint mortgage option assuming your joint incomes are sufficient. It is a complex situation so the best advice I can give is you should go and see an independent whole of market mortgage advisor. They can analyse your situation and provide untied (and impartial) advice.

Good luck!

annie52

My income is £12,000 before tax, it sounds like a good idea though to get some independant morgage advice. We will explore that avenue.