Mortgage/Credit Issues

kevdam

Hi

I've been offered a great deal from my Granddad to buy his house.
Its currently valued at £80,000 but he has offered it to me for £40k.

The banks that I have spoken to have jumped at this and said thats great as I effectively have a 50% deposit.

However, after I spoke to one lender who declined me from the start after a 15 minute conversation based on my credit score.

I check my report regularly and there is no adverse ratings ie late payments etc.

I'm recently debt free (in the last 2 months) and have no overdrafts etc.

As I only moved into my new home 2 months ago, my electoral role information is out of date and despite asking experian to update this they say they can't until the region updates their records despite giving evidence.

I dont want to go from lender to lender as I know this will affect my credit rating.

What options do I have? its too good a deal to miss and my grandad needs to sell ASAP due to Granny's arthritis.

Could I:

Ask my Granddad to simply pass the house over to me, in the hope to remortgage as soon as the house is in my name?

Borrow £30k (which is possible) and pay this for the house saying I'll pay the remaining £10k once I have the house and re-mortgaged.

Or pass up on the opportunity?

I'm a first time buyer but wont be living in the property but instead renting it out.

Mortgage should only be £200 a month and rental income is around £600.

Any help would be greatly appreciated

Mobeer

Where will your grandparents live? Can they afford to lose £40k by selling so cheaply? If they expect to receive state benefits then will they be at risk of being judged to have voluntarily impoverished themselves if they let their house go on the cheap.

kingstreet

So this is a family purchase at undervalue, buy to let for a first time buyer with a short residence history.

Did you tell these lenders you spoke to you intend to let the property?

Where will your grandparents live? Do you recognise the phrase "deprivation of assets?"

Further research required.

tim123456789

so where's GD going to live?

do you currently live in a house that you own?

I realise that this will incur some expenses, but if we ignore them for now, how does:

GD sells house at market value
GD gives you 40K
you then go to the bank for BTL mortgage using the 40K as deposit.

work for you?

If it doesn't then it's unsurprising that the bank won't go for the original deal

tim