Advice Required ASAP

threedarths

Good Evening,

Am hoping that some people here may well be able to help me. My wife and I, 10 years ago purchased a 2/3rds share of my Mother-in-laws house where we have lived paying the mortgage for the past 10 years whilst my Mother-in-law lives in Cyprus.
My Mother-in-law is named in mortgage though does not pay anything towards it, and also on the land registry documents
Two weeks ago she decided whilst in the UK, to tell my wife that she wanted us to buy her effectively out of my wife's share of the 1/3rd of the property that she owned. As she needed the money.
Unfortunately we were told a number of months ago that whilst my Mother-in-law remained on the mortgage we would be unable to remortgage due to her being a dependent and not helping with any payments.
So we looked at a secured loan on the house in order to pay off my Mother-in-law and also do some debt consolidation too, therefore clearing all outstanding debt. A lender was found and our application was successful, however upon speaking to our solicitors yesterday we found out that we required the authority of Natwest in order to look at the removal of the Mother-in-law from the Title Deeds and the Mortgage.
This afternoon I contacted Natwest in order to get their authority to be told by Natwest that as we were removing one name from the account, we would have to go through the process of a new application into two names and would have to go through an affordability test, even though we went through the same test just 4 months ago when we changed our mortgage over to a better rate. This afternoon Natwest told us that we had failed the test and as such we would not be able to remove the Mother-in-law from the mortgage nor the title deeds from the house. They also stated that we would have to now speak to one of their advisors by phone but could not get an appointment for this to happen until 9th September.
I am completely perplexed by Natwest's decision as we have over £230,000 worth of equity in the property and with consolidating all our debt at the same time as paying the Mother-in-law her share of the house will over £2K a month left in which to live on.
I am looking at opening formal complaints with Natwest in respect of the initial mortgage advice were given when taking out the mortgage and the decision today in relation to not giving us authority to remove someone from the deeds which wishes to remove herself from the property
Has anyone else had such problems and what should we look at doing?

dimbo61

You are asking to borrow more against the property to Clear debt and pay your Mother in Law. Natwest have said no.
You cannot afford to do this with the Natwest.

Thrugelmir

threedarths wrote: »

I am completely perplexed by Natwest's decision as we have over £230,000 worth of equity in the property and with consolidating all our debt at the same time as paying the Mother-in-law her share of the house will over £2K a month left in which to live on.

You'll find that lenders don't view the situation in the same manner. The amount of equity in the property while a factor isn't the only criteria that will need to be met.

How much debt are you looking to consolidate?

amnblog

If Nat West say you cannot afford the mortgage without your mother in law given your circumstances today you will need to consider remortgaging to another lender.

If you cannot raise the funds you need you will have to sell or your mother in law will have to wait.

Consult a good mortgage broker.

threedarths

If Nat West say you cannot afford the mortgage without your mother in law given your circumstances today you will need to consider remortgaging to another lender.

The Mother in law has never paid anything into the mortgage at all, and my wife and I have never ever missed any payments and afford to pay the mortgage every month!

The amount of debt we are looking to consolidate is around £40K but that includes all our credit cards etc, so will see them all cleared and cut up.

From the advice above it looks like a possible re-mortgage with another lender may well be the easiest option

Nick

mrginge

threedarths wrote: »

From the advice above it looks like a possible re-mortgage with another lender may well be the easiest option

Nick

Lenders are all working to the same fundamental rules, so while there will be some differences in criteria, i wouldn't assume that using a different lender was necessarily the 'easiest option'

Thrugelmir

threedarths wrote: »

The amount of debt we are looking to consolidate is around £40K

This amount of debt will influence any lenders decision. As suggests an inability to manage money. Consolidation is the answer for the borrower but not the solution as far as a lender is concerned.