buying house with cash but need some money too..advice!

blondie1982_2

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holly_hobby

Depending the details of your partners bad debt (ie when were they registered, how much for, number and whether CCJs or Defaults) - there will certainly be a home of this given the low LTV.

How you would manage this would be, MIL purchases the house form you, your coneveyncer repays your mge lender the os mge, and forwards you the balance.

From the balance you pay your Mum the 12k debt, with the residual capital forming the deposit for your new home, with you subsequently seeking a mge for the remaining agreed pch price.

Given that you have a current os mge with your Hubby (and depending on the figs), it may be best to apply for the new mge in your partners sole name (given that your existing mge commitment with hubby will be taken into account as part of the affordabilty assessment, if you are joint applicant).

Your mge broker will crunch the figs, and guide and advise further as to the best way to manage the new application.

It may also be worth pushing your hubby to have you removed from the existing mge (subject to the lenders agreement), as whilst you remain party you also remain legally responsible and pursuable for repaying the mge debt.

Hope this helps

Holly x

holly_hobby

blondie1982 wrote: »

Although I am a little confused and sorry if I sound completely dumb!
What is LTV?

Loan To Value - which is the difference between the purchase price and mortgage required.

blondie1982 wrote: »

And say the MIL purchases our house for £165000, we literally buy a house for £165000 and then want to borrow £15000 (for example) from a mortgage lender (to pay mum and a bit extra for any other things) how will this work?

I assume your current home is mortgage free, if you will have the entire sale proceeds at your disposal.

You simply retain the amount you need to pay mum and fund repairs from the 165k - you then seek a mge to pch the house for either the same amount (ie 15k ), more or less, whatever - as long as the income supports the requested mge and its within the lenders max lending remits.

blondie1982 wrote: »

He doesnt have a CCJ but has a debt management thing set up and a few missed payments from when he wasnt working for a short period last year.

More tricky to place due to recent blip, but given a low amount of borrowing, and the rest of the details, there may still be a home.

blondie1982 wrote: »

His income is £20000 a year, mine is £26000 but I am guessing because I have a CCJ and a mortgage with someone else that like you say it will have to be a mortgage just in his name.

Yes re your existing mge, but I would expect you would want to settle the CCJ you have obtained, from the whopping 165k in cash you'll receive on sale of your house ?

blondie1982 wrote: »

We have tried to get my name off hubbys mortgage and they wont allow it because although he pays the mortgage each month in their eyes he doesnt earn enough for just him to be named on it.

Thank you very much xxx

He can't be released because although he is paying this himself, his income doesn't meet the lenders affordability matrix, and they therefore want 2 scalps instead of 1 to pursue in the event of default.

Make an appointment with a adverse credit broker ...

Hope this helps

H x

holly_hobby

Estate agent/bank mge advisers tend to get a bad press, because they usually (although not always) have limited exposure to placing "non standard" cases, and typically less varied mortgage placement experience as a whole.

Sourcing a local experienced mge broker, well word of mouth is generally the best way, but if not have a scout through your yellow pages for whole of market/indpendent mortgage brokers.

There are adverse mge lenders (recent adverse, higher the LTV = higher rates), however depending upon the merits of the case and other factors, including the apparent super low ltv, your broker may be able to negotiate a more mainsteam solution.

Expect to pay a fee (on completion) for your borkers service - which Im sure you would be happy to absorb, given their knowledge and if they can meet your requirements.

Hope this helps