Desperate to Remortgage

AngelLP

Hi,

I currently live at a flat I own with my ex partner. We broke up almost 3 years ago and he has not paid anything towards the mortgage in this time. He seems agreeable to have his name taken off the mortgage and deeds and we applied for a transfer of equity last year with our current lender in mine and my brothers name. However my current mortgage company rejected my brother saying he did not meet their current lending criteria.

Can anyone offer any advise on mortgage companies that may be able to help with our situation? I'm finding it very stressful and feel like I can't move forward at all. My Alliance and Leicester mortgage is part and part @ 4.99% variable rate and I have been trying to make overpayments where possible to reduce the dept and increase chances of a remortgage - I'm on the cusp of 90% LTV mortgage as we owe almost £182,000 and bought the property for £200,000.

Any help or pointers on what to do or who can offer advise would be appreciated!

_Andy_

In what way did your brother not meet their criteria?
Would you prefer mortgage to just be in your name or joint with brother?

One concern I would have is what the property is actually worth now, i.e. if it would still get valued at £200k or might be less - any similar properties in that area sold recently?

Bufger

More detail needed.

Your brother got rejected - due to credit history? Income?

When you originally got your mortgage with your now ex you would have gone through the mortgage affordability process with income multipliers, credit checks etc. All they are telling you is that your brother is a risk to them so you have to figure out why.

Other alternatives past that are find someone else to own it with, get a £50k per year job or sell up and downsize to something you can afford.

AngelLP

They did not specify but after some reading we think it is because he has a criminal record from 6 years ago. The conviction was not money related. My brother earns £38k a year so his income was not an issue

I would apply for it in my name but I only earn 23k so surely my income would not cover the outstanding loan?

There are two flats currently under offer in our block. They where on at £200k and £195k - However I do not know the actual offer accepted.

Bufger

AngelLP wrote: »

They did not specify but after some reading we think it is because he has a criminal record from 6 years ago. The conviction was not money related.

I would apply for it in my name but I only earn 23k so surely my income would not cover the outstanding loan?

There are two flats currently under offer in our block. They where on at £200k and £195k - However I do not know the actual offer accepted.

And what is your brothers income?

You'll generally only be able to borrow on a 4x income basis. Some lenders stretch up to 4.5 but no more than that.

(23,000 + ? ) x 4 needs to equal 180,000 for you to get a mortgage deal.

Dave_Ham

It is likely to be the criminal record that is the issue, if otherwise his credit is fine. This will be dependent on lender though..

Have a chat with a broker and they will be able to explore the options better, with full details to hand.

Good luck