joint mortgage with retired grandparents?

jpowell79

Hi guys,

was wondering if any mortgage experts could advise on something for me.

My grandparents recently sold a flat that was left to them, and are now looking to move out to essex.

The problem is they are really keen to get a bungalow in Upminster, but simply dont have enough money. They sold the flat for £215k, but a decent bungalow close to the shops in upminster is around the £280k-£300k mark.

I suggested to them about getting a joint mortgage, but not sure how much luck we would have.

They are retired, and my credit rating is very very poor (although I do earn a good salary) - would a mortgage advisor take into account they could put a hefty deposit down (50% of the value of the property) or would it be a no-go with a retired couple on pension and somone with poor credit?

the plan would be ideally that they put up at least half the money in cash, and I pay the other half in mortgage payments each month, and live with them for a while while I save up.

perhaps there is a better way to do it? any suggestions?

thanks

bfgun

jpowell79 wrote: »

Hi guys,

was wondering if any mortgage experts could advise on something for me.

My grandparents recently sold a flat that was left to them, and are now looking to move out to essex.

The problem is they are really keen to get a bungalow in Upminster, but simply dont have enough money. They sold the flat for £215k, but a decent bungalow close to the shops in upminster is around the £280k-£300k mark.

I suggested to them about getting a joint mortgage, but not sure how much luck we would have.

They are retired, and my credit rating is very very poor (although I do earn a good salary) - would a mortgage advisor take into account they could put a hefty deposit down (50% of the value of the property) or would it be a no-go with a retired couple on pension and somone with poor credit?

the plan would be ideally that they put up at least half the money in cash, and I pay the other half in mortgage payments each month, and live with them for a while while I save up.

perhaps there is a better way to do it? any suggestions?

thanks

I'm not a mortgage expert but I would have presumed that with such a large deposit the risk to the lender is negligible.

Nins12345

Can you expand on your credit rating please CCjs? Or ivas?

hunnie

Hello,
I, myself, am retired and took out a new mortagage last year. (considered a remortgage although I had no mortgage on the property)
The lenders would only consider a short term motgage up to 70 years of age of the oldest applicant.
Otherwise no problem.
I took a 5 year fix with Nationwide.
If you shop around some lenders may extend this term but probably at a cost !!

Regards
Hunnie

Dave_Ham

Hi there,

Way too many variables to be able to give you a fuller answer, however there will always be a solution with a decent deposit.

As requested, can you give more details on your bad credit and also your grandparents ages please?

Also, is Upminster the absolute, as there will certainly be homes in Cranham, Hornchurch & Horndon and will be cheaper than Central Upminster...?

jpowell79

thanks for the responses guys. My credit score is really poor according to equifax and experian.

I got into trouble financially around 4-5 years ago and got a number of defaults on credit cards. I have settled all of them now, but they are still sitting on my credit file causing me hassle!


My grandparents are 76 and 74 so not sure if that makes things difficult.


They would consider cranham and hornhurch, but even still, a nice 2-3 bed bungalow (within walking distance to the shops) is still very very hard to find at anything under 250k

Dave_Ham

This is going to be hard given their ages unfortunately.

Have you had any credit since the defaults were logged 4-5 years ago?

When you say they were left a flat, did they own their own home also and what are they doing with this? Sorry if I missed this on other posts

jpowell79

they have lived in a council property for 25 years....last year my nan was left a flat by her uncle.

They recently sold the flat, and are looking to use the proceeds of that to get out of London.


I also rent privately at the moment, so would work out better for everyone this way.


In terms of credit, I have two high-rate credit cards now (aquacard and vanquis) which I've had for about 18 months, which I pay off each month.....got them to help build up my credit, but it doesn't seem to have made the blindest bit of difference to my credit score! :-(


Am hoping the fact that the deposit would be hefty, that it might sway some lenders?

jpowell79

according to another thread, there ipswich building society and the darlington building society will consider older people.

Does anyone know of any others? not having much luck with google :-(


want to make a shortlist so I can compare rates.

Dave_Ham

Given your situation, you need to forget rates for now and find a solution.

Both Ipswich and Darlington have specific criteria and were mentioned on other threads poorly in my opinion without knowing the full circumstances of the client.

Call them up and get a view from them. Ipswich manually underwrite the case and therefore do not credit score which may be an advantage but their ages are restricted, although cannot recall to what ages...

You need advice as I do not feel this will be easy to broker yourself, as there are other considerations for you and your grandparents.

Assuming their credit score is good, you may be able to get them to guarantor a mortgage your name although again given the deposit being there's you would all require independent legal advice.

Get a free consultation with a broker to look through your options, I may be biased but do not always advocate this solution if straightforward.

Do not worry too much about the physical score attached to your credit score. You have satisfied defaults and running credit resposibily so this will be improving your underlying credit proposition. Keep doing this and ensure you keep chunking off the cards.. It will help more than you are currently seeing...