Mortgage advice with bad credit or possible Remortgage at 65

MotherDear65

The house is worth about £140k and a settlement figure of £42k to finish it... 4 1/2 years left of the mortgage to run. Not sure I understand the adverse credit thing you mentioned. Sorry.

The imminent danger of losing the property is quite high. As my son's partner is suffering severe depression and already made several unsuccessful suicide attempts over the past couple of years.

If the worst happened my son and their kids would be homeless and house would be the partners ex's. Legally as far as we know their is nothing we can do to remove him without transfer of equity or deeds and those stumbling blocks have been mentioned earlier

MotherDear65

kingstreet wrote: »

If I input £12,120, one adult, A pass, no existing credit or dependents, I get £47,150 for a thirty year term on our calculator.

I don't know what Halifax uses on its customer site, but it may be misleading.

I just used the one I found on Halifax website.... Nowhere to mention term.

Yes I suppose it assumes a long loan term and that figure was the maximum they would give over a very long term. Oh well. Got my hopes up for a second or two.

kingstreet

Adverse credit - defaults, court judgments etc disappear, or "fall off" your credit file 6 years from the date they are registered.

A £42k mortgage on £140k property. How much is having to be paid to the ex to get rid?

If it's half the equity, £50k, a £92k mortgage on £140k value, 65% loan to value, should be possible with a specialist lender. The rate might be around the 6% mark, maybe more.

Have they spoken to any decent brokers about this?

Bufger

This sounds like a giant mess. You need to think of all the possible outcomes before investing your money into another (this may be blunt but its required). Say you release £50k to your son who then puts it against a mortgage he isnt on the deeds for:

Your son dies/runs away, doesnt have a will
Your sons partner leaves him/dies
The partners ex comes back on the scene or doesnt get released from the deeds
your son loses his job and cant keep up the repayment on your property

Basically in all of these scenarios you are left with a £50k mortgage at the age of 65. Your son has years left in him to clear his debt and sort his life out. You do not have years of work and opportunity left and if you get left with this mess it will quite frankly cripple your finances to misery.

Family are great but whats saying hes going to stick around forever. Circumstances always change and not always for the better. You need to ride your own storms and only help others if you're in a good non risk position to do so.

MotherDear65

£15k to pay off.... Son has 6 unpaid defaults from 4 years ago.... His partner has two ccj's she is paying off and 1 default unpaid from 4 years ago.

They haven't spoken to any brokers just the mortgage lender refusing to take off the ex's name as they wouldn't let his partner be sole name on mortgage due to not working and bad credit. Also they wouldn't let my son replace the ex due to bad credit.

How would they negotiate with a broker for a deal? Wouldn't the fact that my son has no claim to the house affect this?

kingstreet

They would be remortgaging into joint names to repay the ex partner's equity. The mortgage and property would then be in the names of your son and his partner.

They will need to speak to brokers and establish what fee would be payable. The broker will find them a lender willing to lend to them to do this and at the best rate possible.

MotherDear65

Bufger wrote: »

This sounds like a giant mess. You need to think of all the possible outcomes before investing your money into another (this may be blunt but its required). Say you release £50k to your son who then puts it against a mortgage he isnt on the deeds for:

Your son dies/runs away, doesnt have a will
Your sons partner leaves him/dies
The partners ex comes back on the scene or doesnt get released from the deeds
your son loses his job and cant keep up the repayment on your property

Basically in all of these scenarios you are left with a £50k mortgage at the age of 65. Your son has years left in him to clear his debt and sort his life out. You do not have years of work and opportunity left and if you get left with this mess it will quite frankly cripple your finances to misery.

Family are great but whats saying hes going to stick around forever. Circumstances always change and not always for the better. You need to ride your own storms and only help others if you're in a good non risk position to do so.

I understand the risks. I would give anything and everything to help my son and my grandchildren. We are as close as close can be.

MotherDear65

kingstreet wrote: »

They would be remortgaging into joint names to repay the ex partner's equity. The mortgage and property would then be in the names of your son and his partner.

They will need to speak to brokers and establish what fee would be payable. The broker will find them a lender willing to lend to them to do this and at the best rate possible.

What are the chances of them getting approved with such bad credit? And 1 not working?

Again, thanks for your time and advice.

kingstreet

It depends on the overall information of the case, income, equity, credit history etc. A broker will establish all this and make a recommendation, if any is possible.

They will apply to a lender willing to accept such cases, an adverse credit specialist and the rate will reflect that.

MotherDear65

Would a mortgage lender let me replace the ex do you think with a transfer of equity? My son and I considered that as an alternative. Would my age, being retired and low income put them off me? Their current mortgage payment is only 180/month interest only. Would I pass the affordability check?