Mortgage help and advice needed!!!!

benitocarbone

Good Morning everybody, Ill try and keep this as short as possible whislt giving as much info as I can.

My father and I bought a property together around 10 years ago for 20K. Over the years we have remortgaged to take money out for home improvements, personal use etc (it was necessary )
I have borrowed considerably more and we now split the mortgage payment 70% myself and 30% my father approx. If the mortgage were to go full term we would have 50% equity each.

My father now owns his own property alone albeit with a buy to let mortgage, as he had our mortgage. He needs to change as his payments are huge and eating into his savings (hes 70) he wants to come off the mortgage of what now is really my house, take his chunk of equity and carry on his own mortgage alone.

Now the tricky part... the house is worth 90K approx with 20K equity. I owe 47K father owes 23K. First question does this mean he is entitled to all of the equity if we sold? Secondly as I am now contracting I think I would find it very difficult to get a mortgage (i want to remortgage on my own and pay him off) therefore to solve this problem I fear I will have to sell the house in order to pay father what is owed to him. Something which I do not want to do!!

I am on a short term contract earning 2.5K per month approx.
Will anybody give me a mortgage?

Please help!!! Thanks in advance benitocarbone x

benitocarbone

I see my thread had quite a few views but people were obviously unable to help. Thank you to thos who took the time to look.

I think im doomed and will have to sell the house.

Nevermind, benitocarbone

Jimbo1976

It is possible for contractors to get mortgages. Speak to a broker who will guide you through the process and tell you if you can get a mortgage.

As to how much equity you need to give your father. You seem to know how much you each owe. You need to find £23k to buy out your father plus but ultimately you need to work out how the growth is going to be split. I would suggest that you have a chat about it and work it out. If you both put the same amount in and changed your share of the payments based on who took money out when you remortgaged then IMHO it should be an even split. If you father gets all the growth then you will struggle to buy him out. If you have £10k of equity then it may be possible to remortgage to buy him out. Again a broker will help you with this.

Thrugelmir

Why not pay the full mortgage yourself? This would alleviate your father of the outgoing for his share.

marathonic

Thrugelmir wrote: »

Why not pay the full mortgage yourself? This would alleviate your father of the outgoing for his share.

I agree. If you sell, the mortgage would be cleared, your dad would get the 20k and you'd still owe him 2k (the joys of using your house as an ATM).

Better to just continue the payments yourself.

Jpro

I completely agree with Jimbo1976 when he says speak to a mortgage broker. If you dont mind me asking, who took the money out when the property was remortgaged? As has already been stated this may help with finding the best way of possibly buying your farther out.

Jimbo1976 wrote: »

It is possible for contractors to get mortgages. Speak to a broker who will guide you through the process and tell you if you can get a mortgage.

As to how much equity you need to give your father. You seem to know how much you each owe. You need to find £23k to buy out your father plus but ultimately you need to work out how the growth is going to be split. I would suggest that you have a chat about it and work it out. If you both put the same amount in and changed your share of the payments based on who took money out when you remortgaged then IMHO it should be an even split. If you father gets all the growth then you will struggle to buy him out. If you have £10k of equity then it may be possible to remortgage to buy him out. Again a broker will help you with this.