Mortgage advice with bad credit or possible Remortgage at 65

ody1977

Thanks Dave Ham. I'm trying to learn as I go. Got zero experience in any of this and this place has been a godsend for advice and info. The hardest part is getting the ball rolling obviously made harder by my stupidity in getting in such a bad mess with my credit. (I have been good for 3/4 years now though.. hehe. Hindsight eh!)

Cheers to everyone, will keep thread updated during this, no doubt, it's a long arduous road ahead!

Quick question... do both houses have to be sold and we have the cash for the deposit before we can progress. Or can they be used as some sort of deposit/collateral on the premise that they will be sold and used for deposit for new house?

Dave_Ham

Therein lies your biggest hurdle (aside from partners ex getting greedy of course)

Theoretically you can use the equity as a deposit, although this will rile out pretty much all lenders as per my previous post on where your deposit is coming from and who are occupants, owners etc.

You will not crack this on your own and understand, you just need to be confident that your broker has a home for this and everything is being declared upfront and honestly.

This is a hornets nest of a situation to be in, getting yourself a legal, compliant solution is going to need navigating carefully.

Take some reassurance from your broker, ask a few leading questions about how he/she is packaging it.

ody1977

Would you recommend getting the ex out of the equation first?

I get a mortgage at a probably high rate over a lengthy term.
Pay him off.. House is now mine and partners.

Less complicated or still just as bad?

Dave_Ham

Without your Ex doing anything, it would be a house sale and therefore depending on value you may incur stamp duty and may incur sols costs more than normal.

It is certainly simpler than bringing in Mum, but the unknown variable is how Ex is going to behave so would want that nailed down first.

You would be tied in and therefore Mum may have to stay put, either way be prepared for some stress please...

There are seriously so many considerations on your case, some sub prime lenders are going to want to know why you are buying the home where you are registered and why. If you are then treated as a couple then OH credit score may throw it out of bed..

Honestly not trying to scare/stress you out, just want you to appreciate the magnitude of this and ensure your broker/partner/Mum do also...

You are correct to be doing something, it is just complicated heavily by the situation revolving Ex factor (could not help myself)

ody1977

Dave_Ham wrote: »

Without your Ex doing anything, it would be a house sale and therefore depending on value you may incur stamp duty and may incur sols costs more than normal.

It is certainly simpler than bringing in Mum, but the unknown variable is how Ex is going to behave so would want that nailed down first.

You would be tied in and therefore Mum may have to stay put, either way be prepared for some stress please...

There are seriously so many considerations on your case, some sub prime lenders are going to want to know why you are buying the home where you are registered and why. If you are then treated as a couple then OH credit score may throw it out of bed..

Honestly not trying to scare/stress you out, just want you to appreciate the magnitude of this and ensure your broker/partner/Mum do also...

You are correct to be doing something, it is just complicated heavily by the situation revolving Ex factor (could not help myself)

:beer: nice pun mate.

Yeah it needs to be sorted one way or the other. Can't go on with the uncertainty now that the ex is willing to be bought out.

It was never really an option before, just sit it out and hope for the best. Knowing that the house would have to be sold at the end of the term as he has always been adamant he wanted half which we weren't prepared to give him and let the court handle the equity shareout.

Dave_Ham

I thought your Mum had said previously, he was going to take £5k or something to walk away - not hang it out for half??

ody1977

Dave_Ham wrote: »

I thought your Mum had said previously, he was going to take £5k or something to walk away - not hang it out for half??

Over the years he was never willing to accept anything less than half... or wait until term was up and then get 50% when sold etc.

We left it like that for years as thought was pointless. We made enquiries to him recently and he said he would accept £15k. Hoping can get that down to £10k but we are budgetting to pay him the £15k. So would need mortgage for £63k to pay mortgage (£48k) and him off. Mum must have mistyped if she said £5k, it's always been £15k, as she knows.

So if we went down that route straight away I should be able to get a mortgage to cover that. Pay old mortgage, pay him off. Then would have Mum's house £90k equity + ~£80k equity on our jointly owned property (me and partner) House we are looking at is on market for £285k, so would be looking for £115k mortgage between the 3 of us.

edit: sorry for late replies, been picking kids up.

ody1977

Decided to try get mortgage in my name to pay off mortgage and ex. Seems to be the safest option and quickest option. Would only need £58k now as he willing to accept £10K.

GET on the phone to broker... who had originally said should be able to sort something out for us between max £75-100k

Bad news...

Broker who said would be able to do something for me with regards to getting a mortgage has said nothing they can do for me now, as I would be classed as a first time buyer and they know of no lender who will take on a first time buyer with adverse credit.

Wont do anything for mum as she doesnt live in the property...
Wont do anything for partner as no job even though gets benefits...

Back to square one.. losing hope. _pale__pale_

Is a default unpaid just as bad as default settled? Any point in trying to pay them off or just let them fall off in a couple of years? (I know the moral thing to do is pay them, but when you trying to secure a roof over kids heads the moral thing is not always the best thing to do)

Dave_Ham

Sorry to hear the bad news.

I was sceptical with the speed at which the broker suggested there would be a straightforward solution.

At least you have some definition from the Ex and therefore a figure to go at.

I still believe there are likely to be solutions, although it is absolutely full of pitfalls and barriers to overcome...

I wish you well

ody1977

Yeah...

Need £58k... First time buyer...age 35.. £25,460 salary. 5 unpaid defaults...to buy house worth £140,000.

Not bothered about term length or rate.

Not involving mum now... Leaving partner out of it as well as only on benefits.

Anyone gonna show me the money?? :eek: