Bad credit mortgages???

Minimes2012

Firstly thank you for taking the time to read this!!

My partners mother sadly passed away in February because of this my partner and his brother inherited the house which has no mortgage on it.

The house was worth £125,000 and my partner and I decided we would like to buy his brother out as this would be a good way of getting on the property ladder.

This is where it gets tricky, I am 26 my partner 29 we have both recently paid off all our debts, but I used to be in a debt management plan.

My partner has 1 default on his account I have about 5 (the annoyance of not caring about the future in my teenage years)

We both bank with Barclays both soley and joint and take home jointly around £42500 annually.

Barclays turned us down for a mortgage of £90000 (69% LTV) as the house is now worth £130000 due to home improvements we have already made. They turned us down as I used to have a DMP

We are both so disheartened as we don't know what to do next as we have both tried so hard to improve our credit score (mine 793 my partners 723)

So any help and advice would be greatly appreciated.

Thank you for taking the time to read this x

fart

Minimes2012 wrote: »

Firstly thank you for taking the time to read this!!

My partners mother sadly passed away in February because of this my partner and his brother inherited the house which has no mortgage on it.

The house was worth £125,000 and my partner and I decided we would like to buy his brother out as this would be a good way of getting on the property ladder.

This is where it gets tricky, I am 26 my partner 29 we have both recently paid off all our debts, but I used to be in a debt management plan.

My partner has 1 default on his account I have about 5 (the annoyance of not caring about the future in my teenage years)

We both bank with Barclays both soley and joint and take home jointly around £42500 annually.

Barclays turned us down for a mortgage of £90000 (69% LTV) as the house is now worth £130000 due to home improvements we have already made. They turned us down as I used to have a DMP

We are both so disheartened as we don't know what to do next as we have both tried so hard to improve our credit score (mine 793 my partners 723)

So any help and advice would be greatly appreciated.

Thank you for taking the time to read this x

So you have approximately £65k in this house, plus earn £40k+ between you?

Where do you live? And what's happening with the property if no-one buys the other person out?

fart

Thinking about this, you have loads of options.

Brother wants to sell: You can put up for sale but live in it rent free and save like mad, then move somewhere really cheap and save save save, then try to buy outright, or get a big deposit saved and then overpay on a mortgage.

Depends what the brother wants to do with it, if he just wants to sit on the house then you should be able to stay there rent free, but i take it he either wants to get rid or let it out?

Just beware that you'll probably be liable for capital gains tax with any future sale, something which should be factored into any agreement you come to with the brother.

Dan-Dan

fart wrote: »

Just beware that you'll probably be liable for capital gains tax with any future sale, something which should be factored into any agreement you come to with the brother.

Can you explain this in more detail?

Minimes2012

fart wrote: »

So you have approximately £65k in this house, plus earn £40k+ between you?

Where do you live? And what's happening with the property if no-one buys the other person out?

We live down in Havant, Portsmouth, we have already moved in to the property, had central heating put in, Made the bathroom bigger and installed a brand new suite and tiles, Had the Bedroom completely skimmed, new skirting, lovely d!cor as sadly the so called mortgage adviser at barclays (More like a data inputter) assured us we wouldn't have a problem.

We really want this to be our home x

fart

Dan-Dan wrote: »

Can you explain this in more detail?

Explain what, capital gains tax?

I'm not sure if brother A buying out brother B counts as a 'sale' and then whether brother A would be liable for CGT should he sell it on in the future, but it's something that needs to be thought about for sure.

Dan-Dan

Why would they be liable for capital gains if it`s their only place of residence?

fart

Dan-Dan wrote: »

Why would they be liable for capital gains if it`s their only place of residence?

What for his brother? I didn't realise you could say you were living in it and therefore bypass the tax on a future sale, but the brother is still selling for a profit, no?

Dan-Dan

If the brother is bought out, his interest in the property ends, and it`s then the sole residence for the other beneficiarie, and once they sell, down the line, why would they be liable for CGT?

fart

Dan-Dan wrote: »

If the brother is bought out, his interest in the property ends, and it`s then the sole residence for the other beneficiarie, and once they sell, down the line, why would they be liable for CGT?

What for his brother? I didn't realise you could say you were living in it and therefore bypass the tax on a future sale, but the brother is still selling for a profit, no?

His brother should be liable for CGT when selling to him?

I've already admitted i didn't realise you could live in it and bypass the tax, not sure why you're still going on about it.

Dan-Dan

I`m going on about it , because as with many of your other threads , you seem to talk a load of old balls with no real idea of if you know what your on about
And change your font, please