Second mortgage

JimS82

Hi there really hope someone can offer advice here.

For a while I considered having my property repossessed as I needed to move due to an expanding family in a small flat, but was unable due to negative equity. I cancelled the direct debit and saved the money to put towards a council house on the advice of cccs and cab.

Today my mum has offered to give me £20,000 to put towards a second mortgage for a house. I would like to keep my current property and let this out.

What are the chances of me being accepted for a second mortgage with four months missed payments on my current property? I could clear these but do not want to do this until I have an agreement for another mortgage. If I cannot buy again I would rather the house was repossessed so I could get social housing.

Any advice would be appreciated. I do not want to start applying for things and leave footprints on my credit file. I have just finished paying a loan and have no other debts other than the mortgage.

Thanks.

Excited13

Are you on a DMP with CCCS?

To be honest with arrears I doubt your present lender would allow you to transfer to a BTL especially with the negative equity.

Regards a second mortgage I would also think this is unlikely due to the above.

Even if you get repossed there is no guarantee you will be entitled to social housing as they may class you as intentionally homeless.

Sorry I can't help.

BitterAndTwisted

What are the chances? You have two: slim or none!

What idiot stops paying their mortgage and puts the money into savings for "a council house"?

What idiot would be worried about "footprints" on their credit-file while they're in mortgage arrears?

What social housing? There's a dire shortage in most parts of the country. You'll be lucky to be put into a hostel or B&B

JimS82

No I am not in any debt payment plan. I did the above on professional advice actually from both cccs and cab.

My situation has changed and I was only looking for advice, no need to be so rude.

carslet

you must have known that if you stop paying your mortgage it would trash your credit file.

also I cant believe the CAB would advise someone to stop paying if you can afford to pay and had no other debts, just sounds like madness to me.

I don't think you will have much chance of getting another mortgage now.

JimS82

The situation I was in I was unable to keep up full payments anyway and was advised that I should prepare for the inevitable. I was not worried about my credit file at that time only my familys wellbeing. Things are now better and as I say the situation has changed.

I will speak to a mortgage adviser tommorow.

carslet

well that is different if you were unable to keep up the full payments, and now your situation has changed, good luck with the mortgage.

JimS82

Thanks carslet.

kingstreet

JimS82 wrote: »

What are the chances of me being accepted for a second mortgage with four months missed payments on my current property?

Your chances are virtually non-existent. You'll need to clear the arrears and make the full payments for a period of twelve months, possibly more, before you'll get another mortgage.

Then, you'll need an increased deposit because you are buying another property while keeping the first, probably 20% (maybe 25% due to the historic mortgage arrears) and you'll need a lender prepared to ignore the let property/mortgage in the background, otherwise the cost of the current mortgage will be deducted from your income so the new lender can establish you could afford both mortgages should you have a tenancy void.

Do you really want to be a landlord?

Fire_Fox

JimS82 wrote: »

Hi there really hope someone can offer advice here.

For a while I considered having my property repossessed as I needed to move due to an expanding family in a small flat, but was unable due to negative equity. I cancelled the direct debit and saved the money to put towards a council house on the advice of cccs and cab.

Today my mum has offered to give me £20,000 to put towards a second mortgage for a house. I would like to keep my current property and let this out.

What are the chances of me being accepted for a second mortgage with four months missed payments on my current property? I could clear these but do not want to do this until I have an agreement for another mortgage. If I cannot buy again I would rather the house was repossessed so I could get social housing.

Any advice would be appreciated. I do not want to start applying for things and leave footprints on my credit file. I have just finished paying a loan and have no other debts other than the mortgage.

Thanks.

You won't get social housing, repossession is classed as making yourself intentionally homeless. Councils now only give temporary housing for up to a year, and not if you are at fault or could house yourself. No idea why CCCS or CAB advised trashing your credit worthiness. You do understand if you are repo'd you will be chased for any shortfall and costs? This can run to tens of thousands, many go bankrupt.

Are you claiming all the benefits you are eligible for, Support for Mortgage Interest for example? If so complete a Statement of Affairs and post on the Debt Free Wannabe board, cut your outgoings so you can manage financially. Moving into a bigger house may seem like a solution but you will have higher council tax and other bills, if you can't manage now what will change?

JimS82

kingstreet wrote: »

Your chances are virtually non-existent. You'll need to clear the arrears and make the full payments for a period of twelve months, possibly more, before you'll get another mortgage.

Then, you'll need an increased deposit because you are buying another property while keeping the first, probably 20% (maybe 25% due to the historic mortgage arrears) and you'll need a lender prepared to ignore the let property/mortgage in the background, otherwise the cost of the current mortgage will be deducted from your income so the new lender can establish you could afford both mortgages should you have a tenancy void.

Do you really want to be a landlord?

Thanks for your advice...

The honest answer is that I don't want to be a landlord. I thought if I could let it for several years I may be able to sell it further down the line without repossession and would give me and my family more space in the mean time.

In your opinion what are the chances of getting a mortgage within 5 years after repossession if I used the gifted money to settle the shortfall with the mortgage company.

Thanks again.