Can't get Mortgage even with £45000 deposit! What to do?

krishijones

Struggling to get a mortgage hence asking for massive suggestion please:

My parents have their own house worth £160k, with £70k outstanding on their mortgage. My parents income is £40k (dad- £25k, mum- £15k).

I'm 25, have about £45k (all savings from previous work as I lived home), but now I'm at university and therefore can't get a mortgage.

My parents income is £40k (dad- £25k, mum- £15k), and they've been told they cant get a mortgage for a second house...

It is vital that I'm on the mortgage too for the second house, because I aim to live there with one/two other students who'd be contributing to the rent. Being on the mortgage would avoid HMO issues and will also be tax efficient (for the rent).

Nationwide have said they can't help as they are tight. Tried 'London and the country' who said they will get back, but they never did. And no replies to any emails either.

What should I do? I'll be living in the new flat for at least 5 years (due to uni and trainings after), so it would be a good investment. Help?

ACG

Find another broker. There are 2 products on the market that may do what you are after.

No guarantee they will accept you as there is not enough info but theoretically there may be a way of doing it. L&C are a fee free vanilla broker. As soon as you want anything less than straight forward its likely they will struggle.

mrginge

krishijones wrote: »

Being on the mortgage would avoid HMO issues....

Are you sure about this?

Senior_Paper_Monitor

A case of a little knowledge being a dangerous thing.


Definitely broker territory this one (and as ACG indicates - an experienced broker with time to put in [which means fees]).

jennifernil

mrginge wrote: »

Are you sure about this?

Up here in Scotland, resident owner + 2 lodgers is not an HMO requiring a licence at the moment, though you may still have to comply with certain requirements. No idea about England.

However, having other owners on the mortgage may alter things.

We were guarantors for our daughter when she was a student, but the property was in her name only.

krishijones

So how do I go on about this? Any free Brokers who might be able to help? Would even pay if mortgage was guaranteed...

Yeah the property is in Scotland, so if I'm on the mortgage/flat owner, I'd be a resident landlord, so can have 2 other people without having the HMO licence.

mrginge wrote: »

Are you sure about this?

Senior_Paper_Monitor wrote: »

A case of a little knowledge being a dangerous thing.


Definitely broker territory this one (and as ACG indicates - an experienced broker with time to put in [which means fees]).

jennifernil wrote: »

Up here in Scotland, resident owner + 2 lodgers is not an HMO requiring a licence at the moment, though you may still have to comply with certain requirements. No idea about England.

However, having other owners on the mortgage may alter things.

We were guarantors for our daughter when she was a student, but the property was in her name only.

fairy_lights

I think the advice you've been given is pretty clear - you need to see a mortgage broker. Did you apply to nationwide directly or did you go through a broker then?

Thrugelmir

Can't get Mortgage even with £45000 deposit! What to do?

What's your income source? Deposit is just that a deposit. The debt still has to be serviced.

krishijones

It was through Nationwide directly. Also, tried London and the Country, but they never got back after taking all the details. Would these brokers charge a fee? Aren't there any brokers who do it for free, or when the mortgage application is successful?

fairy_lights wrote: »

I think the advice you've been given is pretty clear - you need to see a mortgage broker. Did you apply to nationwide directly or did you go through a broker then?

krishijones

Thrugelmir wrote: »

What's your income source? Deposit is just that a deposit. The debt still has to be serviced.

As I said, I'm a student so I won't have any income source. Thats why my parents income would be taken into account, and my deposit. The mortgage will easily be paid by renting the other 2 rooms.