Mortgage Advice

clo87

Hello,

I hope someone can help!

My Grandmother died a few years ago, leaving her house to my mother. My mother didnt want to move into the property, and she didnt want to sell it, as we were living there. We are now looking to buy the property from her. She is going to sign over a percentage of the house over to me, and I am hoping to get a mortgage for the rest to be the sole owner. I will not have to pay the percentage she signs over to me back as it is a gift.

My question is, will I get a mortgage? Does the equity I will have in the house (roughly £60,000) count as my deposit? I would be looking to get a mortgage for roughly £105,000, which from my banks mortgage calculator they would be able to offer me.

The only problem is that I have one default on my credit file that is due to drop off in July 2014, which was settled in 2010. Will this affect my chances?

Do I have to wait a certain amount of time after she has signed part of the house over to me until I can apply for a mortgage?

Many Thanks

ACG

Some lenders will accept the £60k as your deposit.

Before your mother transfers you any share, stop. It might be better to just purchase it off her using a gifted deposit (your equity)... this will not only save money by not having to do a transfer of equity, it may also save time as you do not then have to go through 2 lots of paperwork.

clo87

Thank you for the reply!

I dont understand what you mean by purchasing it off her with a gifted deposit, she doesnt have the £60,000 cash to give me, the money is in the house.

Wh05apk

I wonder if you could effectively change the will, so that part of the property was left to you? Then you would be remortgaging an unencumbered property with the funds raised to buy out your mother?

clo87

I dont understand how I can change a will of my grandmother who is deceased. My grandmother did leave me £5000 which is tied up in the house, so effectively I have £5000 equity already.