Mortgage Help

hunka

Hi guys, I'm wondering if I could provide some assistance with me on the best way forward.

My Father passed away just over a year ago and the plan between my brothers and I was to sell the house.

However, things aren't moving forward and I remember my Father wanting my family to live in the house.

Now this is the tricky part.

I don't think our credit rating is the best and I don't think we'd get a mortgage. We've got some recent defaults on our personal credit, but have never missed a mortgage payment.

A brief breakdown of our finances are:

Home value - about £65k

mortgage (santardair) - £26
home owner load (London scottish) - £27k

A combined personal debt of about £10k

We were thinking of selling our house, paying the mortgage off on our house, pay £5k to the new mortgage and pay the personal debt off and transferring the homeowner loan

So we'd need a mortgage 0f around £25k - my Dad's home is worth around £85k


Is that doable?

The other option is to sell our house and pay off both the homeowner loan and the mortgage, but I don't think in this climate we'd make much, if any profit out of it.

What is your advice?

My wife's credit report is most likley far better than mine, but still pretty poor.

Thanks in advance


Hunka

Thrugelmir

Your best route would appear to be to use your share of the inheritance to sort your finances out. While remaining where you are.

hunka

Thrugelmir wrote: »

Your best route would appear to be to use your share of the inheritance to sort your finances out. While remaining where you are.

The vast majority of that is in the house.


I believe that there's about £10k to be shared amongst 4 of us and the rest tied up in the property.

The house may not sell any time soon and the plan would be for the four of us to let it anyway.

Perhaps we could sell out home, maybe make a few £k and use that to pay towards the rest of our debt?

Or am I just being daft?

Dave_Ham

Ok, actually this is not very easy to follow exactly what the situation is.

However, credit scoring is clearly an issue and therefore best to explore this first.

Exactly when were the defaults registered and for how much?

hunka

Dave_Ham wrote: »

Ok, actually this is not very easy to follow exactly what the situation is.

However, credit scoring is clearly an issue and therefore best to explore this first.

Exactly when were the defaults registered and for how much?

You're right Dave, I was rambling.

My partner's defaults are a couple of years old and she's recieved one from an our household insurance company we believe in error this month.

Mine's are from the past couple of years.

What are the chances of a £25k mortgage on s £80k house? We'd ned to transfer the homeowner loan over to, but the profit from my flat would pay off all our personal debt.

Dave_Ham

You need to check that the secured loan is portable, as many are not.

I am however still confused. What are you going to do about your Brothers share?

Was there a mortgage left on your Father's property?

Are your defaults registered in the last 2 years specifically?

hunka

Dave_Ham wrote: »

You need to check that the secured loan is portable, as many are not.

I am however still confused. What are you going to do about your Brothers share?

Was there a mortgage left on your Father's property?

Are your defaults registered in the last 2 years specifically?

As far as I'm aware, the loan is portable, but I'll be double checking that tomorrow.

My Father's property has a £30k mortgage outstanding

Brother's share - if we can transfer the home loan and get a small mortgage, then that'll give us £26-27k-ish profit form the sale of my flat. I would propose to put £5k into reducing the mortgage on my father's home to £25k, get rid of my debt and share the rest with my brothers.

Yes, some of the defaults are within the past 2 years.


Thanks for your time

hcb42

you cannot reduce your father's mortgage, you need a new one in your name..

hunka

hcb42 wrote: »

you cannot reduce your father's mortgage, you need a new one in your name..

I know, which is why I was asking if you guys think it would be possible to get one with a poor credit rating. I'd add £5k - £10k from the sale of my flat to the £20-25k mortgage to pay off the outstanding mortgage on my father's house(which is £30k).


Sorry for not being able to put it more logically, having a bit of a blonde moment.

Basically I'm asking if someone with a poor credit history could get a 30% loan to value mortgage

Dave_Ham

Potentially yes, although it is not 30% loan to value as you will need to include the secured loan and this brings with it all manner of complications.

I am surprised that your late Father's mortgage company have not been on your case to get things sped up.

I assume the legals regarding your Father's death have already been arranged and assume your Brothers do not currently live at this property?

You will need formal help on this case though, as definitely not an easy off the shelf product.

Given the recent nature of your shared defaults, is a move to this home going to help or make push your resources more?

Annisele

How are you going to pay the other three beneficiaries the £13.75k or so that they're each entitled to from the sale of your Dad's house?