what are my options? If any...

jacel300

right, bit complicated but here goes...
me & 2 friends bought a house together about 5 years ago, with a interest only mortgage on the property.
2 of us owners now live here, with the other owner moved out and renting a property.
he is now looking to buy somewhere else with his new wife and has a mortgage in place ready to go, but he needs to come off this mortgage.
i know we need to remortgage with just the two names but unfortunatly i now have defaults against my name meaning i cant get a mortgage at all, it seems the the only other option seems to be that my other friend remortgages in his name only, meaning that while the other two get houses in there names i get nothing!
i'm just looking for advice really
many thanks

ACG

Do you know you cant get a mortgage or are you just saying that?
There are people with CCJs and ex bankrupts who can get mortgages so dont just say you cant get one if you havnt looked into it.

Without knowing more about the defaults its difficult to say but you could go and see a broker near you.

jacel300

i've tried through the current mortgage lender who told me no because of a 3rd party credit report, i then asked a broker as well if there were any other mortages i could try but as soon as i said about the defaults, they told me that noone would lend because of them

GMS

When were the defaults and for how much? Any other adverse credit?

How much is the property worth? How much do you need to borrow?

Incomes?

jacel300

the defaults have all been in the past 8 months and ive had to put a dmp in place.
the property is worth around 130,000 and thats what we need to borrow.
my income is 21k my housemates around 30k

Caz3121

If there is no equity there is nothing to get, even if you could get a mortgage there are no 100% mortgages any more

Joe_Bloggs

Agree to all sell up and move on. It was never going to be a practicable long term situation. Then consider Plan B.
J_B.

Ghostrider

Agree with the above, always a difficult arrangement and I think even if you could get a mortgage with your credit history it will be at a more expensive rate, and then that penalises your other friend.

Sell up and move on.

ACG

I dont think there is a lot you can do.
There is a lot going against you - theyre quite recent, they havnt been cleared, there is no equity...the only good news is that your incomes combined would cover a mortgage...if you could get one. Also Interest only mortgages are harder to get now, you generally have to show proof of how you are going to pay off the mortgage...they might in your case accept that selling it will be ok as its not a family home as such but im not sure.

getmore4less

sell to the friend looking to buy a place.

Tell him that the only way, neither of you two will get a mortgage.


The reason you get nothing is because there is nothing to get.

You have just had a complicated rental.

kingstreet

jacel300 wrote: »

i've tried through the current mortgage lender who told me no because of a 3rd party credit report, i then asked a broker as well if there were any other mortages i could try but as soon as i said about the defaults, they told me that noone would lend because of them

What exactly have you asked your current lender to do?

Have you asked them for a transfer of equity to remove the third owner from ownership and the mortgage?

On a separate note, I did a mortgage not so long ago for someone in the third borrower's position. The lender accepted the existing mortgage would remain in place and treated it like a credit agreement, accepting he might have to pay two mortgages if his others borrowers defaulted.