Complicated mortgage problems

Ff1478

We are not married we have 2 kids and live In council house

A retired family friend out right owns her own house but has been unable to cope since the death of her husband last year
She is near completion of a cash sale of the property

My partner is in a good job with over 40grand pa

The friend is going to clear his debts with the funds from the sale

She is also putting down 160 grand deposit on a 360 grand house which has an annex for her to live in (connected to the main house) where we will live

We need £200 grand mortgage

We are using which mortgage advisors

We applied on 2nd April

We were told it would be difficult to get a mortgage because of the property having an annex and also using her money as a deposit as we are not related to her

Advised for my partner and her to apply for joint mortgage even tho she has no income he will be responsible for the repayments

They said only company who will take on a mortgage with our criteria is woolich/Barclays

It was agreed in principle we were waiting for a valuation to e done

But they have now told which they are turning us down on affordability

We have increased the deposit to £192 grand and length of term to 30 years but still refused we have now gone to £200 grand dep and are waiting to hear their decision

Which have said if Barclays still refuse us on affordability that we will be unable to get a mortgage at all

The repayments are more than affordable

I am so worried they will refuse it te house is perfect for all our needs but the vendor is also after a quick sale and wants to put it bač on the market

We have filed a complaint with which as to the way the case has been handled and this is being investigated does anyone on here have any advice please I've never used this forum before

da_rule

What is your role in this?
Are you going to own a share of the property?
Do you work/have any income? If so could you be added to the mortgage to help with affordability?
Will the friend own any share in the property?
Is the money she's giving you a gift or a loan?

Ff1478

I will live with my partner and our kids in the main house
I will not have shares in the property
I run a small business from home but it doesn't provide me with any income and I am not in a position to contribute financially
We originally wanted to apply for the mortgage solely in my partners name using 160 grand dep as a gift from our friend but we were declined and told no one would give us the mortgage as the friend wasn't a relative they advised ya the "gift" path was incredibly tricky and would be easier to apply for a joint mortgage in both their names the house will be in bought joint ownership of my partner and the friend

Ff1478

The deposit is a gift not a loan

da_rule

You mention your partner has debts. Are these substantial? As they may be impacting on affordability. The lenders are unlikely to take a chance that his friend will pay them off.

Ff1478

All in around 20 grand

Which assured us that the total settlement of these has been taken into account tho

da_rule

I just did a mortgage affordability calculation (using Rightmove so it's obviously only a guide). With a joint application and a £192,000 deposit and with your partner earning £40k p/a the affordability range was between £335,000 and £377,000. This was based on both applicants having no loan or credit card payments.

There are obviously other things that impact on affordability, such as age, and also the fact that your partner may be seen as having to support you and the children.

da_rule

Also, what are you hoping to achieve by complaining? Which will have tried to get you approved (they are no doubt on commission). If Barclays do turn you down then Which can't make them change their mind.

Ff1478

One of the managers of which rang us to investigate the case they have a complaint themselves against Barclays as they led th and us to believe the mortgage had been approved and submitted for a valuation process and they have since changed their terms

Which have been extremely helpful and supportive

The affordability is totally ridiculas it works out we will be paying £600 Ish a month you can nearly find. Rental property in this area for that rate

Apparently new affordability rules came into effect on 1st April and this has affected our application

Age isn't an issue my partner is in his 30s

Ff1478

If it is refused and we are back to square one and no other lender will lend on the basis of our criteria is their anything we can do to improve a new application

Hypertheticly if my partner was to start a relationship with the friend and therefore they were a couple seeking to get a joint mortgage of 200 grand with a 160 dep would they be more willing to loan the money?

It just amazes me that earnin as much as he does and with a whopping dep as we have we still can't buy a house :-(

da_rule

Don't know if you've seen it but this is a good article on the new rules: http://www.theguardian.com/money/2014/apr/12/need-mortgage-new-rules-lenders-check