Too Old For Mortgage?

jesster_2

Hi - I wondered if anyone could give me a simple yay or nay on the questions below. I am due to see an IFA fairly soon, but want to get an idea of what might or might not be possible so I can be a bit prepared beforehand..

My sister and I have a 95% interest-only mortgage for £140k on a house we bought 3 years ago. We bought it for £147k, but it would now go to market realistically at around £165k - £170k (not sure if that's relevant).

My sister would like to come off the mortgage because she wants to buy with her boyfriend. Our fixed rate + tie in period ends in a couple of months and once it reverts to variable rate it would not be good value on a month to month basis. Do you think it would be possible for me to take on the mortgage in my name only? My salary is £28k + allowance of £2k. I (from this month, hurrah!) have no other debts, but likewise have no savings to try to reduce the loan to value amount. I am expecting to stay interest-only at this stage as plans may well change in 12 months' time.

My basic questions are:
*would it be feasible to get a £140k mortgage on my salary with no money for additional deposit?
*If not, there's a possibility my mum will lend me up to ten grand to help bring down the loan to value and the overall amount. Would this help any?


If this is impossible / inadvisable, then my mum (thank God for mums) has offered to get a joint mortgage / guarantee the mortgage, IF a lender would accept that and IF it made any positive difference. The issues are that she's 64 and self employed. Is anyone likely to give her a mortgage? And, to be blunt, would her joining / guaranteeing the mortgage likely be any help re choice of mortgages and keeping repayments down, or are her risk factors likely to be more of a hinderance?

Any thoughts gratefully received - thanks :-)

MortgageMamma

Your situation is not straightforward but based one what you have said

You are looking to take a mortgage of 140k - no problem with that if no debts in background as you have a salary of 30k most lenders will allow up to 4.5-5 x salary but some will stretch a little more

You have not mentioned if sister wants buying out?

I think securing a mortgage in your own right it going to be easier than your mum going guarantor in the circumstances

JoeK_3

jesster wrote: »

Hi - I wondered if anyone could give me a simple yay or nay on the questions below. I am due to see an IFA fairly soon, but want to get an idea of what might or might not be possible so I can be a bit prepared beforehand..

My sister and I have a 95% interest-only mortgage for £140k on a house we bought 3 years ago. We bought it for £147k, but it would now go to market realistically at around £165k - £170k (not sure if that's relevant).

My sister would like to come off the mortgage because she wants to buy with her boyfriend. Our fixed rate + tie in period ends in a couple of months and once it reverts to variable rate it would not be good value on a month to month basis. Do you think it would be possible for me to take on the mortgage in my name only? My salary is £28k + allowance of £2k. I (from this month, hurrah!) have no other debts, but likewise have no savings to try to reduce the loan to value amount. I am expecting to stay interest-only at this stage as plans may well change in 12 months' time.

My basic questions are:
*would it be feasible to get a £140k mortgage on my salary with no money for additional deposit?
*If not, there's a possibility my mum will lend me up to ten grand to help bring down the loan to value and the overall amount. Would this help any?


If this is impossible / inadvisable, then my mum (thank God for mums) has offered to get a joint mortgage / guarantee the mortgage, IF a lender would accept that and IF it made any positive difference. The issues are that she's 64 and self employed. Is anyone likely to give her a mortgage? And, to be blunt, would her joining / guaranteeing the mortgage likely be any help re choice of mortgages and keeping repayments down, or are her risk factors likely to be more of a hinderance?

Any thoughts gratefully received - thanks :-)

On the face of it you could do this on your own, without the need for mum, (other than the £10,000 that would come in handy)

Halifax looks good!

JoeK

jesster_2

Thanks MM... I'm not planning to buy my sister out at the mo as i don't have the money to. Plus she is keen to keep her half share in it, unofficially, for 12 months or so until i do have the money in the hope it'll go up a bit more.

The hope is that if I can get the mortgage on my own then when I do buy her out it can just be between ourselves rather than needing any change to the paperwork. It's obviously not ideal from my point of view to wait as buying her out later will prob cost more than doing it now, but it's probably the best solution for 12 months or so given i wouldn't get the same standard of house if i took the £140k mortgage out shopping now.

My OH (finances totally separate) is a recently discharged bankrupt so we need to keep him out of things for a few years really.

I was a bit worried re salary multiples because put the details into charcol online and it came up with 'no mortgages available to you'!

Thanks for your help and advice re the mum bit...

jesster_2

JoeK wrote: »

On the face of it you could do this on your own, without the need for mum, (other than the £10,000 that would come in handy)

Halifax looks good!

JoeK

Thanks JoeK

Wouldn't it just! I feel a bit lame having to ask her for help, but not ten grand's worth of lame, if you know what I mean!

Meant to add: I'm debt free now but only recently so: have paid off 2 loans and a credit-card-shuffle totalling 8.5K over the past 16 months. is this likely to affect a mortgage decision now that it's all done and dusted?

MortgageMamma

Did you have any missed payments ccjs or defaults?

Are you financially associated with your partner i.e. do you have joint accounts or have you ever done joint credit searches?

JoeK_3

jesster wrote: »

Meant to add: I'm debt free now but only recently so: have paid off 2 loans and a credit-card-shuffle totalling 8.5K over the past 16 months. is this likely to affect a mortgage decision now that it's all done and dusted?

Well done!

That can only improve things, go for it!

JoeK

jesster_2

No missed payments, no ccjs, no defaults. And absolutely no finances associated with him at all - thanks to the advice on MSE!

MortgageMamma

jesster wrote: »

No missed payments, no ccjs, no defaults. And absolutely no finances associated with him at all - thanks to the advice on MSE!

Been there. its really hard for the person who is bankrupt isnt it. But glad you are disassociated, that means you should fit with the cream of lenders if you approach the right ones

jesster_2

Brill. Some people have suggested putting in a joint application anyway to see what happens as they'd worry about the almost 5x salary thing. But am I right in thinking that's a bad idea as it would link us financially?

MortgageMamma

how long had partner been discharged?