My poor wee girl is in trouble! mortgage advice needed

openside50

The £220k equity may sound a lot but not in the part of London they live and they need to find somewhere else to live, 2 kids aswell, that £220k will probably only buy a 2 bed flat

Plus everything is relative! they had a very nice lifestyle nice house garage big garden so to them it wil be a massive drop in living standards, though I understand how to many it would seem they are pretty well off

Plus her husbands industry has been absolutely devastated - commercial construction - after looking for work in the previously highly paid sector to no avail he is now looking at career change

Seems odd that their existing lender who is actually getting most of the existing loan paid back wont give a smaller mortgage on a property which would have better loan to value ration than the last one!

Wonder how many people are caught in this trap?

PS before getting into trouble because of redundancy they paid their bils on time so its not a case of !!!!less behaviour other than the error of not acting sooner to downsize imvho though I am biased of course!

goodmorningsunshine

DannyboyMidlands wrote: »

In which parallel universe is £240k of equity considered "all sorts of trouble"?!

They should just buy a cheaper house mortgage free.

My thoughts exactly - Some people on here, would love their "problem".;)

openside50

MRG wrote: »

Missed payments with the current lender will probably mean a decline to port the mortgage over as already mentioned.

If they do want to stay as homeowners then there's no harm in trying to get something agreed. Go to a good broker who will know the more flexible lenders to go to. The positive is that the loan to value is very good.

People have mentioned renting but if they are truly out of the woods then its just paying someone elses mortgage. Burning money in my opinion.

CCJ's once settled take approx 6 years before they go from your record, so in theory they would be renting (and probably paying alot more than a mortgage payment) for 6 years or so.

Thanks, good advice, so you think an alternative lender could be arranged?

Whats worrying them is that if they sell their house and try and buy a smaller place that the move could breakdown because of not being able to find the finance needed to fund the approx £80k needed admittedly at a very low loan to value ration

Would a new lender give an agreement in principle to give them the assurance needed to go ful steam ahead - Im getting visions of them coming back and staying with mum and dad!!

openside50

goodmorningsunshine wrote: »

My thoughts exactly - Some people on here, would love their "problem".;)

It really does depend where you live, £220k buys you nothing in this neck of the woods - SW London

The kids are in good schools locally etc - to them its the end of the world having worked so hard to get to where they were, just wish they had taken dads advice as soon as the problems started to mount up

marco_79

No disrespect intended but "Move" away from the area. I have a 5 bedroom new build detatched house, big garden in a nice area up north. Paid £190k for it 5 years ago, worth only slightly more now. I feel very privledged to have the job to support the mortgage on that.

If the main bread winner is thinking of a career change why would you want to stay somewhere where you can't afford to live.

Sorry if thats not what you want to hear.

Marco

opinions4u

openside50 wrote: »

The £220k equity may sound a lot but not in the part of London they live and they need to find somewhere else to live, 2 kids aswell, that £220k will probably only buy a 2 bed flat

It's a big country. The South East is a big area with different house price pockets. They even have schools in other parts of the region too!

Plus everything is relative! they had a very nice lifestyle nice house garage big garden so to them it wil be a massive drop in living standards, though I understand how to many it would seem they are pretty well off

It doesn't matter what the size of the change is. Their current difficulties are actually handing them a fantastic opportunity to change their lifestyles and live debt free.

Plus her husbands industry has been absolutely devastated - commercial construction - after looking for work in the previously highly paid sector to no avail he is now looking at career change

So move north. Buy a mortgage free property with 3 bedrooms and a garden, stick £50k in the bank and start life again.

Seems odd that their existing lender who is actually getting most of the existing loan paid back wont give a smaller mortgage on a property which would have better loan to value ration than the last one!

Why on earth would they want to lend a penny to customers who have let them down before.

Wonder how many people are caught in this trap?

You can wonder. You can sympathise. You can blame the lender, the banks, the government, the Eurozone etc.

Or you can accept it for what it is and do something about it.

mcfisco

Plus her husbands industry has been absolutely devastated - commercial construction - after looking for work in the previously highly paid sector to no avail he is now looking at career change

That's the crux of the matter as far as I can see
If I were you, I'd urge them to take the 220k and buy somewhere debt free with it
That'll allow them to concentrate with the problem of career change, training, education etc. without the worry of paying a mortgage or rent to keep a roof over their heads.
Getting another mortgage secured on their next home adds too much unnecessary risk for a young family IMO

They've worked hard to get where they are - like most of us - but they need to understand that sometimes you land on a snake rather than a ladder
They've worked hard enough and been lucky enough to have £220k not £300k so they're not losing anything by digging in for a while

claire16c

I agree they should move. If they move somewhere where they can become mortgage free, that would fit in very well with her husbands career change as they wouldnt have to worry about the mortgage each month - not many other people can do that.

I only live 30mins to one hour depending on trains from London, but for £220k you could get a 2 bed terrace in a nice area with very good schools, low crime etc. If you didnt mind doing some work you might be able to find a 3 bed. And where I live is expensive so Im sure they could find somewhere even cheaper.

Its why there are massive commuter belt areas around London, because you can get a lot more for your money. Not much compared to up north, but better than in London.

fishcake5_2

I agree its hard to get used to a change of living standards but to be perfectly frank they sound in a very priviledged position that many would yearn to be in. No doubt they have worked very hard for what they achieved , move up north they can be mortgage free and sleep well at night. life is not all about money and possesions its about being a strong secure family unit that the children can thrive in. We have been there and done that without a single regret.

rising_from_the_ashes

openside50 wrote: »

Would a new lender give an agreement in principle to give them the assurance needed to go ful steam ahead - Im getting visions of them coming back and staying with mum and dad!!

Afraid I agree with the others - extremely unlikely they'll get a new mortgage with CCJs, late mortgage payments etc....... the LTV rate is irrelevant - they've not been good payers of late (and it the recent history that counts the most).

Not sure what you mean about "full steam ahead" - they shouldn't even be considering looking for anything else until their property is sold (ones here on the market for 10 months & these used to shift in 2 / 3 weeks ) ..... it could take ages in this market - esp if they're unwilling to accept a low offer and until it's sold they're no concrete idea of what they'll walk away with.

Sell up ..... move somewhere cheaper and start over - they really are very lucky to be able to walk away with £200k (give or take) and be able to do this.

No offence to anyone but London isn't the "be all & end all"