Equity but can't get a mortage! HELP!

dannymahon

Hi all, am having a bit of bother obtaining a mortgage so thought I would as you guys here to see if I can get some new insight on my predicament.

I recently inherited a house. My mother passed away 7 months ago and all that was in her estate was her much unloved property which has been valued at approx £350,000. It needs quite a lot of fixing which has been estimated at approx £50,000 worth or work. That level of investment should increase the value to over £450,000 which is inline with the rest of the street.

So, I am looking for a mortgage to fix the house and then move in. However my financial situation seems to have hinderred me and I am currently receiving very negative vibes from banks and mortage advisors. Reasons being...

- I have 2 defaults to my name which were settled in 2009. One for £60 and one for £90. Both occured due to me not looking after debts before I went travelling. Very stupid!

- I have just recently become a work contractor. I earning £70k per year but as I have only been doing this for 6 months it does not bode well. I want to continue as a contractor but will go back to permanent full time employment if it helps.

- My wife is pregnant and therefore will be on Maternity in July. Therefore a joint mortgage or putting the house in her name will not help.

Overall its very frustrating as I just want to release approx £70k of equity to fix the house and pay off debts from my Mums estate. This to me sounds risk free for a lender! As they have the security of a £350k house. However so far no joy!

Does anyone have insight to something similar? I'm a bit at a loss as to what to do.

Thanks in advance.

TonyMMM

Are you the executor of the estate, and what are the debts you mention ?

dannymahon

Hi, yes I am the executor of the estate, I now have the Grant or Representation. The debts are £11k in council tax and some debts to catalogues of around £3k in total.

Dave_Ham

I am a firm believer (and its a proven fact) that where there is equity there is a way.

Subject to understandably not being privvy to your full financial situation, I would almost guarantee that a decent broker would find a solution for you.

I think so far you have fallen foul to the mortgage advisors in branch can offer one product and the brokers you have seen are not good enough.

What is your wifes credit score like?

Beckyy

Have you spoken to an independant financial advisor? One that isn't linked to a bank or building society.

Thrugelmir

Do you own a property of your own. That you could remortgage to facilitate the settlement of the estates debts?

ACG

This is where experience comes in to play. I wouldnt be confident of getting you a mortgage until you had 1 years accounts. But ive only been doing the job for 6 months.

Even a mortgage advisor can learn on this site

dannymahon

Thanks for your replies everyone. In response to the questions...

- My wifes credit score is great. but she is pregant and apparently we have to declare any possible change of employment status. Which will apply for her and thus rule her out.

- Yes I've been speaking to independant advisors and brokers. Some have blankly said NO CANT HELP immediately. Others have given feedback that the defaults are workable but my situation of only being a contractor for 6 months hinders me.

- I don't have any property of my own. I currently rent.

Overall I now feel that waiting until I have a new contracting offer or permanent role is the way forward. Frustrating that I will have to rent and leave this house empty for at least another 6 months but I don't see what else I can do. I definitely do not want to sell as the investment opportunity is too big.

Thrugelmir

As executor of the estate you are duty bound to settle the outstanding debts of the estate. So be careful. Don't muddle your personal position with your legal responsibilities.

Is the property unihabitable?

dannymahon

Yes at the moment uninhabitable. It wasn't maintained whatsoever for 20 years.

dannymahon

Has anyone ever used a Bridging Loan in between waiting for a mortgage. That seems to be a possible option for me?