Problem with Mortgage

steveweb · 7 August 2013 at 6:21PM

Hi all. A brief background to my problem is that I have debts totalling £16000.00 and this is being managed through a Debt Management Plan.

My current mortgage is £63500.00, which is fixed for a further 4 years and there would be a redemption fee of approx £3000.00 if I repaid this early.

My nan passed away last year and it has been put to me that I could by the house for £72000.00 (it has been valued at £90000.00) but because my dad and aunt are executor they are willing to relinquish some of their share in the estate to let me have the house at that price.

My current lender (Leeds Building Society) will only allow me to port my current mortgage over (£63500) providing the debts I have are paid in full.

I may be able to raise the funds to pay off these debts in full.

However, Leeds Building Society, would not be prepared to lend me extra to make it up to the £72000.00 required to purchase my nan's house, even though I would have paid all debts in full and only have my mortgage.

My questions are, if anyone can help me with this or point me in the right direction:-

Would a lender be prepared to lend me £72000.00 if I have cleared all my debts in full.
How long do I have to wait before I am classed as being credit worthy again if my credit file shows all debts are settled.

Another option is that I sell my house for a minimum of £66500.00 (to cover the mortgage and redemption fee), I have a family member who is prepared to obtain a buy to let type mortgage on an interest only basis, I cover the cost of the monthly mortgage payments and clear my debts as quickly as possible with the money I would have paid for my existing mortgage. If I could clear all debts over a 2-3 year period, how long would I have to wait before I could obtain a mortgage or could I get one immediately, to then purchase the house outright myself.

Thank you for any advice that anyone can give me.