After some advice re mortgage with no deposit!!

Spherian

Hi you brainy people.

OK, this is a little complicated so i will make a very long story as compact as possible.

Ok so My step father passed away, followed by my Mother a couple of months ago, now me and my brother moved into the house to look after my mum, but she couldn't live without my step-dad and took her own life.

So now me and him live together in a house that was mortgaged in their names. When my step father died, obvious my mum took it over, however now shes gone, me and my brother can't just inherit the mortgage, we have to apply for letters of admin and apply for a mortgage in our our names to take it on.

The value of the house is 230k with a Mortgage of 150k remaining, now my credit rating is shot to pieces, so I have no hope of securiing any finances. However my brother has a ok credit rating but does have a default(which is is paying off), however he has a great highly paid job.

We are thinking of just trying to put his name on the deeds / mortgage however we don't even know if he will get a mortgage. We were hoping that because of the equity in the property and the circumstances they would let us carry over the mortgage.

So my questions are:

1) Does having the equity in the property help our case?
2) would we still need a deposit?
3) Is it basically the same as buying a house like normal
4) Would we be best selling, sorting out our finances and in a couple of years when our credit rating is better and with a big deposit buying a house then?

Thanks for your time guys.... Also note, there was no mortgage payment protection or life insurance.

ACG

Depending on how bad your credit is, you may be ok.

Putting that to one side, you may have options but i would strongly suggest sitting down with a broker.

1) Possibly
2) Probably not
3) Pretty much
4) Entirely your decision but if you speak to a broker they can help decide what is and isnt possible.

Sorry for the vague answers, im literally just running out the door but even if i wasnt my answers would still be not much better than sitting on the fence. A broker is your best bet, let them speak to lenders and see what is possible.

Thrugelmir

Consult a solicitor and wind up your late mothers estate in the correct manner.

At the moment you are both exposing yourselves personally to a number of potential problems.

Spherian

Thanks guys. I don't mind vague basic answers, I am just after a bit of rough guidance of what to expect when we visit the broker next week.

Just to clarify, most if not all debts have been settled and or closed on compassionate reasons (from my step dad, my mum didnt have debt in her name, except the mortgage)

as regards to the estate, its just a house nothing else. no savings, money, pensions, cars, nothing just a house.

Annisele

Do you know whether your mum and step-dad owned the property as "joint tenants" or as "tenants in common"?

If it they owned as joint tenants, then the whole house will have passed to your mum on her husband's death. If as tenants in common, then his share will have passed according to his will (or to the rules of intestacy). In that case, it's *possible* that not all the equity in the property belongs to you and your brother.

I don't say that to worry you, and from what you say it's likely your mum did own the whole house. But if you're not sure, it's worth checking earlier rather than later.

Spherian

they were joint tenants, when he passed the whole thing just got put into my mothers name solely.