Life after repossession?

TinTin2004

Hi

Having met my now partner who is based in the North, due to the demise in the property market, I was forced to rent my own house and relocate.

Unfortunately becoming a Landlord unexpectedly doesn't come without it's pit falls.

My house needed repairs which I couldn't afford and tenants were becoming irregular and in the end, about a year ago, I was forced to allow the building society to repossess the house. There was a mortgage shortfall which I now owe but I want to set up home with my new partner.

We have been together for 6 years now and we are fed up renting. We can afford a mortgage easily on my salary but she only works part time.

I've been told she could be the 'mortgage holder' but what criteria would we need to meet if I've had a repossession in the past? Would this affect our chances of getting a mortgage now?

I'm settling my debts with creditors myself with monthly agreements to avoid IVA or Bankrupsy in the hope this would put me in better stead with potential lenders as I've been told that either of these debt plans would mean a greater deposit on any mortgage (some mention 50-60% before lending???)

What are the chances of being treated like normal with a normal mortgage with a normal deposit, say 10-20%?

Annisele

Are you asking about the chances of getting a mortgage now, or in a few years?

I'm sorry to say that if you're asking about now, I don't think you've any chance at all. Your partner may well be able to get a mortgage in her own single name, but that'd be based on just her part time salary.

If you want your income to be taken into account, you'll have to be named on the mortgage - but if you still have outstanding debts from the (recent) repossession, I don't think you'll find anyone to lend to you.

Apart from anything else, you won't get a mortgage without a deposit - but if you do have a deposit, lenders will want to know why you're not using it to settle your debts.

Thrugelmir

TinTin2004 wrote: »

What are the chances of being treated like normal with a normal mortgage with a normal deposit, say 10-20%?

Channel your energies into repaying your debts first.

Whilst renting may not be ideal. You are doing the right thing by clearing your debts. So stick with it. It will be worthwhile.

TinTin2004

Thanks Annisele..

Currently living with my now partner in her house which is currently up for sale as her ex husband want's his share of the equity. My partner doesn't want to leave the house as it's a really nice house. We've been looking at options of raising his share of the equity and take over the house but that would mean taking over the mortgage in her name?

Would the mortgage company look at her finances and say no if she's not earning enough? I'm assuming I would not be getting involved with my track record..??

Our current agreement with her ex is that we're 'renting' her house or covering the mortgage payments until the house sells. Once it sells, then as we're unlikely to get a mortgage (for at least 5 years) then we're going to have to rent and lose the house.

My partners ex has said if we can find his share of the equity, he's happy for us to stay in the house until we're both in a position to buy it in our names?

Complicated I know but my partner an I feel we'll never get a chance at a house like hers unless we can find a way of staying in it while our credit files repair???

Is there anything I've over looked as a possible solution??

kingstreet

If she doesnt have the income to take over the current mortgage, raising a higher mortgage to pay off the ex is going to be a non-starter.

Ask the lender. See what they say. The process is a transfer of equity to remove the ex. Additional borrowing would be how you'd raise the money to pay him off. She could also consider remortgaging to another lender to repay the current joint mortgage and raise the necessary funds, again subject to income, status etc.

Typically, a transfer of equity costs £400 to £600 as the matter is passed to a solicitor once the mortgage is agreed.

TinTin2004

Thanks Kingstreet..

Forgot to mention that there's about £45k equity (to split both ways) with an outstanding balance of around £190k?

Our preferred option is to stay in her house hoping we can buy it once our credit files have repaired?

Question is would the exisitng lender allow her to remove his name and take over the mortgage without having evidence of earnings etc?

The stumbling block is raising the additional £20k for ex husband with my credit history and her low earnings?

Would the existing lender allow her to borrow the 50% of the equity needed to remove his name and take over the mortgage?

We can easily manage the mortgage payments here so this is our preferred solution given our circumstances?

We think it best not to bring this to the lenders attention if it's going to be a non starter...??

kingstreet

TinTin2004 wrote: »

Question is would the exisitng lender allow her to remove his name and take over the mortgage without having evidence of earnings etc?

No. They wouldn't.

Addition or removal of a party requires the usual affordability and status checks.

The other issues all follow from this, so probably no point answering them directly.