Mortgages Help........

robbo147

Hi Everyone

Hope you can help me and my husband with a situation we're in with properties.....

Basically the property myself and my husband live in is still in the joint name of myself and my ex partner. He has not paid anything towards the mortgage sine he left in 2009. This property was purchased in 2004 but was remortgaged in 2007 and to consolidate debts we took out a Mortgage Plus account with Birmingham Midshires which involved a mortgage and unsecured loan to run over the life of the mortgage. Anyway in terms of figures as they stand with this now......

Balance of mortgage - £79k
Balance of loan - £27k
Value of property - approx £100/105k (comparing to similar houses in the area)

I have a bad credit rating due to getting into financial difficulties when I was a single parent and have a CCJ which will be removed from my credit file in April 2015.

In terms of my husband....

He owns a property which he currently rents out. In terms of this...

Balance of mortgage - £70k
Value of property - approx £120k

We would like to be in a position in 2015 so that we can get a bigger house with a view to extending our family and the plan is we'd like to sell both properties. We would've liked to purchase something sooner but we're guessing with my credit rating that wont be possible so short term the main priority is getting the mortgage for my property put into either just my name or joint, whichever is easiest.

I understand BM no longer offer products direct to customers, only through brokers. My ex is happy to walk away from the mortgage etc (as you can imagine). Myself and husband have done a lot of work to the house over the past couple of years. I obviously don't know if BM would allow this with my credit rating, though I can prove I have been paying it from my sole bank account for all this time.

Really we're after advice on our options.

Beckyy

What is your own income? Their main concern will be whether or not you can afford the repayments by their calculations.

robbo147

Thanks for your reply

My income is £26k per annum and my husband's is £31k

ACG

Assuming you sell both properties, have a 15% deposit any half decent mortgage broker could get you a Mortgage tomorrow based on what you have said above.

Avoid estate agent brokers. Get your credit reports down to a broker and have a chat with them. They should help guide you with what is achievable so you have a plan to work towards.

Thrugelmir

Could you sell up now and live in your husbands property?

robbo147

Hi

Thanks for your replies guys.

In terms of selling up and moving into husband's property, not ideal as it's a flat and we have a child and also it's far to travel in terms of my work, child's school etc

ACG, coming from yourself as a mortgage adviser that's really helpful. We will make an appointment with someone and have a chat about that

Simon_gloster

Doing a transfer of equity on your own home in negative equity us likely to decline. Adding your husband may help income wise but BM 's internal scoring system nay scupper this. Also husbands mortgage will get taken into account if not self funding in BM's eyes or confirmed from his lender he us allowed to let it out.

robbo147

Hi Simon

That's what I wasn't sure about as the house isn't in negative equity but obviously when you take the loan into account it does create a shortfall.

I have now contacted a mortgage broker and am waiting for him to get back to me

ACG

If your plan is to sell the property (whether that be now or in a year or so) do you really need to do a transfer of equity?

robbo147

Hi ACG

I am not on good terms with my ex and am worried about him potentially in the future profiting from the sale of the house when he basically hasn't lived here for 4 years and I have paid for a lot of improvements to be made (new kitchen, bathroom etc).

I am also worried about what would happen if he for example refused for a sale to go ahead? I don't know how that would work, e.g. what rights to do that he would have.

Thanks

ACG

Thats fair enough, if things are not amicable then it is best to sort it out sooner rather than later - especially while there is no equity in the place.

If he refused to sell - it wouldnt benefit him anyway as it would hinder his attempts to get a mortgage. You could also take it to court to force a sale - but thats hassle nobody needs.