Mortgage/bad credit/complex

toasterx

My son and his partner have quite a complex predicament so would welcome any informed input and/or recommendations.

She separated from her ex- and has 3 children. The former family home has recently been sold and she now has a lump sum to put towards a place of their own. My son, her, the three children and now their newborn son have been living in a rented house. He works and has a reasonable salary (esp at age 25) and she receives some benefits though these are obviously not going to be there if she sits on the lump sum so she is keen to get that invested asap anyway. Just recently though the landlord put the house on the market, it sold remarkably quickly and they have to be out by February.

My son can get a mortgage but it won't be enough with her lump sum for them to get adequate accommodation in the area where the kids are very settled into their school (not up for negotiation). Her primary problem is that, unbeknownst to her, during her separation from her ex-husband, he missed a couple of mortgage payments (for no good reason AFAICT), didn't tell her and also made a payment plan arrangement with the lending bank (and also didn't tell her). Now the house is sold, the mortgage is paid off, natch. Anyway she didn't find this out until they first enquired about getting a new joint mortgage and was told her credit is messed up. Seems to me she should be kicking up a stink with the lender - she does have a latter FWIW from the ex- admitting that she was not party to the missed payments or the plan - directly and via any ombudsman. It seems logical to me that she should be able to get them to restore her creditworthiness but I suspect that might be a naive and overly optimistic view??? She says she may still be able to find a lender for a joint mortgage but that the interest rates will be punitive.

For our part we have our own property with a mortgage but plenty of equity in it. We don't have ready cash to lend or give them but would be happy to free up equity from our house if we could but I am in freelance IT and cannot show a solid income stream over the last couple of years so I suspect we would find it hard to find a lender to raise additional cash that way???

As the clock is ticking they are under a lot of pressure to get something sorted and the timing with xmas etc is obviously problematic too. Would very much welcome and ideas and suggestions or indeed recommendations of specialist IFAs (Surrey area preferred) who might be able to advise them/us on creative ways to get them moving.

TIA,
M

amnblog

Options:


Have partner's credit file put back to rights by lender - unlikely


Your son to buy with her cash but with her not on the mortgage - unlikely


Raise funds against your property - possible


Get a mortgage with them both on it - possible


They definitely need someone to look at the situation and help them to decide the best way forward.