Mortgage advice with bad credit or possible Remortgage at 65

MotherDear65

Conrad wrote: »

Please do not do it. I've seen this many times and it often ends in tears. What if son breaks up with his wife, what if he was unable to work? You would have to find £700 om mortgage on an £1100 p month income:eek:

Can they not just seel the place and start anew even if it means renting for a while?

Your son can write off all debts by going bankcrupt - my Brother did this and did not loose the family home. Do not use a middle man to do this as they will recommend an IVA or debt managment plan as those 2 options earn him fees.

Maybe look into that. Being bankcrupt is absolutely fine - my Brother even kept his Bank account. Life goes on but at a scrath of the pen all his debt worry was removed. I don't know your sons full details so I can't say for sure.

Thanks for the concern. I get the feeling you think I'm getting taken advantage of. It isn't the case believe me I offered to do this and would sell home if needs be. It will be my son's anyways. He is only 2 years from the defaults disappearing and credit rating will be much improved and could be able to take over the debt in his own name. Bankruptcy seems to be a bit drastic when he is not struggling financially. He wouldn't leave me stuck with the debt under any circumstances.

Selling would involve my son's partners ex wanting more money and probably result in going to court which is not something we would like to do due to her ill health.

Dave_Ham

Hi there,

I would fancy that subject to the information declared that this would be achievable. Usually in this situation, there may be some more skeletons out there as and when full declarations with the actual applicants are looking through.

Whilst I think it achievable, it is disappointing to read that in a more recent post your Son is not struggling financially although he does have outstanding defaults that have not been settled.

This is based upon a £150 interest only payment so imagine when a repayment mortgage kicks in....?

You do not need to answer this, class it as rhetorical although would have a word with your Son about how and when debt is managed. Whilst they drop off after 6 years lenders still have this information on their internal systems..

All the best

MotherDear65

Hi thanks for the reply.

What I meant "not financially struggling" is that he isn't well off but he has made the choice to put all his disposable income making over payments on the mortgage. His credit rating is ruined no matter what for 6 years so rather than pay off defaults and still get refused mortgage and/or loan and not be able to afford to finish the mortgage off, he is doing everything he can to make sure the house is paid for before the term is up. Even though it could leave him with nothing at all at any time.

Losing his job 4 years ago he had to prioritise between his debts and keeping a roof over his family's heads was deemed more important than other debts.

Back to the achievable part. Which part do you mean? Me getting a remortgage or them getting a remortgage through a broker?

Thanks for any advice.

Dave_Ham

Could get either, although would imagine it would be better to leave you out of the equation.

Whilst people need to prioritise at times, overpaying mortgage at the expense of repaying unsecured debt may well now be counter productive as achieving a mortgage is likely to be harder/more expensive

MotherDear65

Thanks.... My son and I both agree to only involve me as a last resort. So if they can remortgage themselves it would be for the best. You have given us all some hope so for that i am very grateful.

Is the original mortgage with son's partner and her ex a stumbling block though with trying to get a remortgage in her name and my son. How would we get around that? How can he get a remortgage when not on original mortgage or can solicitor sort that out?

Dave_Ham

Herein lies your problem number 2

The Solicitor deals with this, although they will require authority from your Sons, partners ex.

He will be told to get independent advice, which may lead them to telling him he in entitled to 50% of the equity so be very careful.

MotherDear65

Dave_Ham wrote: »

Herein lies your problem number 2

The Solicitor deals with this, although they will require authority from your Sons, partners ex.

He will be told to get independent advice, which may lead them to telling him he in entitled to 50% of the equity so be very careful.

Would they tell him he is entitled to 50% when he officially moved out 20 years ago from the home and has made no payment towards the mortgage, maintenance, repairs, improvements and childcare. They have receipts for everything involving the house and proof of mortgage payments being made.

Dave_Ham

Potentially yes, hence why in previous posts they other posters were saying about not putting your money/home in to pay it off.

MotherDear65

Ok thanks for your advice.

Thrugelmir

MotherDear65 wrote: »

Would they tell him he is entitled to 50% when he officially moved out 20 years ago from the home

How old are his children then?