Possibility of getting a mortgage?

samtoby

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.

If both names are on the deeds then you can go to court to obtain an order to stop him doing this. This effects until the youngest is 18 but it may involve that with in the criteria of this order that the maintenance goes direct to the court for them to pay to the lender (obviusly through the CSA) as long as she can pay the mortgage this is deffinatly something she should go to the CAB about.

Simon_gloster

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

If she is able to buy him out from the help of her parents then he should be able to be removed from the deeds, however not automatically from the mortgage.

i would imaging once he has his money he will no longer want to be part of the mortgage as it will effetc him later down the line when he goes for a mortgage himself (if he does).

She will have to go through an application with her current lender or another to prove she can manage it by herself under their terms.

Base on the info given, it seems she is unemployed receiving maintenance and benefits. Lenders will not take 100% of those payments (some onot at all). Certainly no Jobseekers allowance or council tax benefit.

"If" we did use all the income she has and take 60% of it (standard), then the annual income is circs £8000. Not enough to remove him so he would have to stay on the mortgage whether he liked it or not.

mum-of-two_2

I'm not sure I've explained things properly.

Depending on what percentage for each person is agreed, her parents think they may be able to lend her enough money to buy him out.

So, say the house is valued at £225K and the outstanding mortgage is £50K, there's £175K total equity.

If her share is 60% and his is 40% (no idea if this is anywhere near right, she's got this figure from a friend of hers who was divorced a few years ago), she would have £105K and he would have £70K.
So her parents lend her £70K (she's an only child so no issues with other siblings) and she gives him that to buy his share of the house out.

She is then left with the existing outstanding mortgage (currently in joint names) that she wants to take on herself.
The original question was 'will a lender even consider her even though she has massive positive equity given her financial status'?

He doesn't want to be part of the mortgage now.

Are we both confused about how it works?
I don't think her solicitor has got that far in explaining things.

"If" we did use all the income she has and take 60% of it (standard), then the annual income is circs £8000. Not enough to remove him so he would have to stay on the mortgage whether he liked it or not.

sorry, I don't understand the above.

Apologies if I've confused things.

She's also told me that she doesn't get Income Support 'cos her youngest is too old, she's actually already on Job Seekers.

Simon_gloster

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

mum-of-two wrote: »

I'm not sure I've explained things properly.

Depending on what percentage for each person is agreed, her parents think they may be able to lend her enough money to buy him out.

So, say the house is valued at £225K and the outstanding mortgage is £50K, there's £175K total equity.

If her share is 60% and his is 40% (no idea if this is anywhere near right, she's got this figure from a friend of hers who was divorced a few years ago), she would have £105K and he would have £70K.
So her parents lend her £70K (she's an only child so no issues with other siblings) and she gives him that to buy his share of the house out.

She is then left with the existing outstanding mortgage (currently in joint names) that she wants to take on herself.
The original question was 'will a lender even consider her even though she has massive positive equity given her financial status'?

He doesn't want to be part of the mortgage now.

Are we both confused about how it works?
I don't think her solicitor has got that far in explaining things.



sorry, I don't understand the above.

Apologies if I've confused things.

She's also told me that she doesn't get Income Support 'cos her youngest is too old, she's actually already on Job Seekers.

Hi

I do seem to understand. The equity in the home actually doesn't make the blindest bit of difference from a lenders point of view.

If he does want off the mortgage, she will need to prove by way of salary and other income that she can support the loan (she may do in real life but unfortunately thats not what counts).

The £8000 situation is as follows by way of example :

If she gets a total of £10,000 per annum from (CTC, CHB, Main etc) the lender would key this into the new mortgage applciation but the system would only use £6,000 (60%) of it.

Therefore based on the info now, he won't be allowed off the mortgage if she is looking to take it on herself.

The only way I can think of doing this is for her parents to buy him out, reduce her existing mortgage loan size (by making a lump sum payment) down to lets say £15,000 ish, then she applies for a Transfer of Equity (ie removing a name off the current mortgage).


I'd have to say even applying for a £15,000 mortgage is tough for a single mum with 2 kids and no salary.

A broker is needed for this I think as some lender treat state benefits differently to others ie Accord mortgages.