porting a mortgate with poor credit

jennyn8545

Hi, we are currently in a two bed house with 3 kids ( on variable rate with n/wide) we are in desperate need of a three bed house, but unfortunatley cannot get a new mortgage/borrow more as we have a DMP and £5000 outstanding on a secured loan.
With my options being very slim, my grandad (very kindly) has offered to sell me his 3 bed for less than mine. his valued at £83000 mine £75000
So my questions are -can he do this as his divorced wife owns 40% of the house ?
- will nationwide let me port the mortgage, as they say they will only do the application when we recieve an offer on ours ?
-or should we just rent a lager house until our credit improves ?
thanks in advance:o

jennyn8545

oops * larger

Thrugelmir

The DMP will scupper your chances totally.

Yorkie1

Where will your grandfather live once he sells you his house?

If he sells at an undervalue and needs either benefits or residential care, he will be treated as if he has the full value still and have to pay up. Google deprivation of assets. He should have independent legal advice before doing this.

And yes, if his ex is on the deeds then she will have to agree to the sale and its price too.

For these reasons alone, before even thinking about the DMP issue, I'd say it's a bad idea.