Possibility of getting a mortgage?

mum-of-two_2

Hi, not sure if this is the right place for this query, but here goes.....

My friend's OH has left her.
She has 2 school-age children.

She only has a part time job, for 5 hours a weeks associated with school (as she has nobody to look after the kids during school holidays).

She is currently (in addition to her wages) receiving Child tax credit, child benefit and maintenance plus other benefits

She is paying all the mortgage at the present time.

She wants to stay in the house but he wants to sell.
There is quite a lot of equity in the house, probably worth £225K with an outstanding mortgage of £50K on it.
She may be able to raise the cash to buy him out (from her parents) but that would still leave her with the mortgage which would obviously have to be a totally new one.

She is worried that no lender would consider her for a mortgage with her limited earnings and so would end up having to sell the house.
But with that amount of equity in a house (£175K) does anyone think she has a chance of getting a mortgage?

I know the probable answer is she should go into Building Societies/Banks and ask but she thinks she will be laughed at and is she feeling pretty vulnerable at the moment.

Thanks in advance.

ACG

It looks like a no on the face of it however....

The maintenance, how much is that? Is it court or CSA ordered?
Can you find out how much she gets in benefits and split it down also?

How old are the kids?

Its very unlikely unless the maintenance is quite substantial but we would need to know before we could say for certain.

HappyMJ

mum-of-two wrote: »

Hi, not sure if this is the right place for this query, but here goes.....

My friend's OH has left her.
She has 2 school-age children.

She only has a part time job, for 5 hours a weeks associated with school (as she has nobody to look after the kids during school holidays).

She is currently (in addition to her wages) receiving Child tax credit, child benefit and maintenance plus other benefits

She is paying all the mortgage at the present time.

She wants to stay in the house but he wants to sell.
There is quite a lot of equity in the house, probably worth £225K with an outstanding mortgage of £50K on it.
She may be able to raise the cash to buy him out (from her parents) but that would still leave her with the mortgage which would obviously have to be a totally new one.

She is worried that no lender would consider her for a mortgage with her limited earnings and so would end up having to sell the house.
But with that amount of equity in a house (£175K) does anyone think she has a chance of getting a mortgage?

I know the probable answer is she should go into Building Societies/Banks and ask but she thinks she will be laughed at and is she feeling pretty vulnerable at the moment.

Thanks in advance.

She can carry on with the same mortgage. She does not need to get a new one.

She will not be laughed at. If she is then please come back here and name and shame.

She will need professional help. A solicitor will help. She'll need a valuation on the house so that she pays the lowest amount possible for the property. If the house really is worth £225k and she has children with him then she may not need very much to buy him out.

As she has school age children is it possible for her to get a job. Any job will do and will help tremendously in getting the mortgage lender to lend her additional money.

mum-of-two_2

Thanks for the prompt reply.

Not 100% sure of amounts but maintenance is through CSA - about £300 per month.

CTC is about £450 pm, Child benefit £145 pm, I think she gets Income Support as a lone parent but that is reduced slightly by her earnings (and will stop pretty soon due to Govt changes in age of youngest child but she will then claim Jobseekers but also reduced by her earnings) so estimate £220 pm.

Total income would be around £1245 pm - but of course a lot of that is benefit/other people based.

She also gets full Council Tax benefit.

Thanks

ETA:
sorry, kids are 10 and 8

Dave_Ham

Hi there,

More information needs to be provided on here or to a suitably qualified professional.

It sounds like always over promote the broker route, although I would fancy on the face of it I could get a decent mortgage rate on these numbers.

Your friend will need some decent legal advice, as I cannot imagine her OH will just stand for her taking the mortgage and him not getting a decent split of equity, which is where more information is needed.

Whilst she may get some more than needed, more information on maintenance etc. may need to be provided.

There are all sorts of other considerations and I am sure it is hard enough going through this, without the financial rigours but legally being the primary carer for the children (I am assuming this is the case) gives her all of the legal power to her side, so OH will be unable to force anything, for now..

HappyMJ

mum-of-two wrote: »

Thanks for the prompt reply.

Not 100% sure of amounts but maintenance is through CSA - about £300 per month.

CTC is about £450 pm, Child benefit £145 pm, I think she gets Income Support as a lone parent but that is reduced slightly by her earnings (and will stop pretty soon due to Govt changes in age of youngest child but she will then claim Jobseekers but also reduced by her earnings) so estimate £220 pm.

Total income would be around £1245 pm - but of course a lot of that is benefit/other people based.

She also gets full Council Tax benefit.

Thanks

ETA:
sorry, kids are 10 and 8

Very tight. She really must find a job. Anything at all and it only needs to be 16 hours or more as a lone parent to also get working tax credits. She will have to find a childminder for the school holidays and claim for the childcare element of child tax credits.

mum-of-two_2

HappyMJ wrote: »

She can carry on with the same mortgage. She does not need to get a new one.

She will not be laughed at. If she is then please come back here and name and shame.

She will need professional help. A solicitor will help. She'll need a valuation on the house so that she pays the lowest amount possible for the property. If the house really is worth £225k and she has children with him then she may not need very much to buy him out.

As she has school age children is it possible for her to get a job. Any job will do and will help tremendously in getting the mortgage lender to lend her additional money.

The mortgage is in both names so we thought if she could afford to buy him out she would have to renegotiate a totally new deal, either with the same lender or a different one.

She is seeing a solicitor, a lot of this hinges on what percentage split is agreed on and whether she can raise the cash to buy him out.

When I said she was worried about being laughed at, I meant she thinks she might arrange an appointment with a lender, take all her stuff and within minutes, they'll say 'Sorry, we couldn't possibly take such a risk by lending you money'.

I think she just wants a bit of assurance that it's not going to be a resounding 'NO' across the board.
She doesn't want to get her hopes up that she might be able to stay in the house if nobody will offer her a mortgage as her parents can't afford the 'buyout' money plus her morgage.

Thanks

Dave_Ham

She really needs to see a broker, I am confident there will be a solution with the kind support of her parents..

Going to her bank will be difficult as they are usually limited and only have one product to sell..

I wish her well..


All the best...

paulmapp8306

As my sister is going through something similar - with slightly older children (14/16/19) I can be fairly confidant her OH cannot force the sale of the house until the youngest child is at least 16 (I think its actually 18) due to child welfare issues - provided she has prime custody.

the worse that could happen is he refuses to pay anything towards the mortgage so she has to manage that herself, and he would retain a 50% interest in the equity - but he cant force her to sell at this stage.

mum-of-two_2

Dave_Ham wrote: »

She really needs to see a broker, I am confident there will be a solution with the kind support of her parents..

Going to her bank will be difficult as they are usually limited and only have one product to sell..

I wish her well..


All the best...

Thanks for this - :T it's exactly what she wanted to hear, that there is at least half a chance that she'll be able to get a mortgage.

Bad news is coming at her so fast that she's afraid to look on the bright side.

Thanks too for your kind words - it's a tough time.

She knows she has the option to sell and could buy a property outright but she has invested a lot of time and love in her house and it's in a very nice area.
Cheaper and smaller houses wouldn't be.

mum-of-two_2

paulmapp8306 wrote: »

As my sister is going through something similar - with slightly older children (14/16/19) I can be fairly confidant her OH cannot force the sale of the house until the youngest child is at least 16 (I think its actually 18) due to child welfare issues - provided she has prime custody.

the worse that could happen is he refuses to pay anything towards the mortgage so she has to manage that herself, and he would retain a 50% interest in the equity - but he cant force her to sell at this stage.

As I understand it, her solicitor seems to have advised her that he can force a sale if she can't buy him out.
Maybe it's to do with the amount of equity in the house? As I said above, she could aford to sell and buy another house in the same catchment area and be mortgage free.

He has already refused to pay anything towards the mortgage, she has been paying since he left and can afford it.
I think her solicitor said that anything she pays after he left will be taken into account.