Mortgage advice with bad credit or possible Remortgage at 65

kingstreet

A remortgage is a totally new mortgage, to replace the old one.

You apply jointly with your partner. A solicitor acts for you in what's known as a transfer of equity. This involves raising the new mortgage, changing the title deeds to the property to the ownership of you and your partner and settling the equity claim of your partner's ex.

The solicitor collects the mortgage money from the new lender, repays the existing mortgage and pays to the ex partner whatever is due to him.

Your partner's ex will be advised to seek his own legal representation but he does not necessarily have to do that. He needs to agree to whatever settlement is offered and to sign the necessary transfer forms which are needed to complete the transfer of equity.

This is a straightforward and regular process for most lenders and solicitors. The confusion here seems to be use of the word remortgage. This is as explained. It is not a new product or further advance from an existing lender. It is a whole new mortgage to replace the old one.

ody1977

Thanks both of you for the advice. I think I understand a bit better now. Surprised the broker we spoke to today was adamant nothing we could do.

Is there anything stopping my partner and her ex selling the house to me for an amount to cover the original mortgage £48k + £15k to pay ex off. If I could somehow get a mortgage for that amount (£63k). Can a house be sold for whatever the owners agree to sell it for ? No matter how much it is below the value of the property?

kingstreet

Effectively a TofE is your partner and her ex selling the property to your partner and you.

Why would you wish to exclude your partner from the ownership?

This would have issues. She would be gifting the equity in the property while continuing to occupy it, but not being party to the mortgage/ownership. I'd avoid this, if you can.

ody1977

Would it have to be a transfer of deeds in your examples rather than a transfer of equity? As the mortgage would then be paid off completely and wouldn't have a right to stop any change in the deeds. I failed the credit checks when trying for a transfer of equity earlier due to my bad credit.

If it is still a transfer of equity wouldn't the mortgage company block it again or can the Solicitor come up with something to appease the mortgage lender?
I'm starting to confuse myself again.. Sorry I have no experience in this at all.

ody1977

kingstreet wrote: »

Effectively a TofE is your partner and her ex selling the property to your partner and you.

Why would you wish to exclude your partner from the ownership?

This would have issues. She would be gifting the equity in the property while continuing to occupy it, but not being party to the mortgage/ownership. I'd avoid this, if you can.

It was my partners idea. We would both be willing to do anything to remove ex's name no matter what for the security of the home for our children.

Preferably as soon as possible because of her condition and if anything happens to her we will all be homeless. I will be paying 100% of the mortgage and don't mind if she isn't liable for the debt and she is comfortable with me owning all of the property. Which after it was paid I would add her back onto the deeds. We have a very stable honest relationship. This is all for security for our kids and how best to keep our family home. As the ex would think nothing of selling the house and leaving his kids without a home.

Also the worry of the house etc is one of the reasons she is ill and a conclusion to this whole matter, we hope, could be the start of a recovery for her.

ody1977

Another mortgage query....... What is a bad Apr for a mortgage? I'm expecting a high Apr if we get accepted on a deal, but what do you think we will be offered? More than 10% Apr? Any ideas what to expect?

Thrugelmir

MotherDear65 wrote: »

I think they have received legal advice in the past that as their mother owns half of the property and has kids less than 18 that he can not force a sale. As that was a worry they had that when his youngest turned 18 he would try to force a sale. Seems a grey area.

Not while in full time education .

ody1977

Thrugelmir wrote: »

Not while in full time education .

What my mum meant was that it was a grey area whether he could force a sale with my kids living there who are 6 and 8 even though their mother owns half the property. Some legal advice has said he could force sale and others say he can't. But it's irrelevant at the moment as we know he couldn't due to his youngest still being in full time education.

kingstreet

ody1977 wrote: »

Would it have to be a transfer of deeds in your examples rather than a transfer of equity? As the mortgage would then be paid off completely and wouldn't have a right to stop any change in the deeds. I failed the credit checks when trying for a transfer of equity earlier due to my bad credit.

If it is still a transfer of equity wouldn't the mortgage company block it again or can the Solicitor come up with something to appease the mortgage lender?
I'm starting to confuse myself again.. Sorry I have no experience in this at all.

It's the same thing. A transfer of equity is the removal of a party from the ownership of the property and the mortgage, possibly with a replacement party, you. You were trying to do it with a lender which already held the mortgage. Next time, you'll be doing it with a new lender which will accept your credit problems, as you're looking for that kind of deal.

Rates vary, we don't know what you might be charged. Ignore the APR - look purely at the rate and any fees payable.

You are leaving the current mortgage lender when you remortgage. The old lender will have no say in it. It will be repaid and the new mortgage with the new lender will start. As mentioned, the solicitor will repay the mortgage and the ex and will transfer the title to the property into your names, having removed the ex while completing the transfer to you.

ody1977

Thanks again kingstreet.

Would I have a better chance of getting a mortgage on my own with 5 unpaid defaults from 2009/2010. . Besides that a good history and 2/3 years of no missed payments on loan and credit cards. Salary £25,460.

Or better chance with a joint application with partners 3 defaults in 2009/2010.. 2 of these defaults turned into ccj's that are getting paid monthly (dated 2010 and 2012 respectively) . 1 default unpaid... Not working due to ill health but benefits of approx £20k pa (dla, esa, chb, ctc). Does her income count or will her ccj limit our chances more than her income works in our favour.

Property worth £135000-£155000... Looking for £65000 mortgage so less than 50% LTV.

I know the chances are slim either way..