In a hole

Westminster

I waited till I exited my DMP and no longer had any defaults on my CRAs before I attempted to get a new mortgage.

Once you go onto a DMP I would expect that even IF you did find a lender, it doesn't sound like you have anywhere near enough equity with your current property and also I would expect the interest rate to be a fair bit higher than you have now (also you will DEFINITELY be on a repayment mortgage)

Stuspillz

Foxy-Stoat wrote: »

You could ask your current lender for their index linked valuation and see if your LTV is better than you think but if your Sister wants to be free from your mortgage then you should really be putting all your effort to make this happen as without her help then you would of sold the flat a few years ago.

My sister has been extremely patient and supporting of me finding a route to keep the property, the original investment was a inheritance from our uncle so it means more than just the pound signs.

Her rental renewal is up in July and that is when they want to start progressing with mortgage offers ect.

I have told her I will either have it on the market by the end of the month or a plan in motion to get another person on to replace her.

Foxy-Stoat_3

If your valuation comes back at £125K then you have no equity in this property after the fees are paid, add that to the fact that you are on a DMP I would suspect that no one will be able to replace your Sister on the mortgage if they see pound signs only.

Stuspillz

I have also today spoken with a mortgage specialist who thinks that as I've been in a DMP for two years and have paid on time everytime it wouldn't look awful.

He said my sister could get a mortgage alongside mine too.

Failing that he also thinks that my younger brother could come onto it despite being 18 and only holding a mobile phone contract?

Does this sound realistic?

Westminster

Well your broker will have all the facts - so best of luck with it :-)

andyfromotley

Stuspillz wrote: »

Does this sound realistic?

Not even remotely. sorry.

Hope it works out for you.

Annisele

Stuspillz wrote: »

As it stand today I owe £122k. SVB of 4% for 28years and 9months.
Repayments are £613pm - I earn about £1,400 I have a lodger who pays £300pm all in. I pay £200pm to a DMP. Est Debt is £13,500

I'm not sure if the £1,400 a month is before or after tax, but I guess you're earning about £17k to £20k. If that's the case, a mortgage of £122k on your sole salary is simply not going to happen. Some lenders may go up to around five times salary, but only for people with perfect credit histories, no debts, no dependents, and a decent sized deposit. You want six to seven times your salary, and I can't see any lender being prepared to do that.

Stuspillz wrote: »

The property is valued at £151k on Zoopla, I find this extremely unlikley and would gauge it around £125k based on similar sales in the area in recent times.

If you move to a new lender, that's also going to be a problem. Lenders like the loan to value (LTV) ratio to be no more than 95% - and generally lower than 90%. So, depending on how a new lender values your property, you might only be able to borrow £118k against it - even if your income was £1million. If you want to move lender, you might need a cash injection even if you do get somebody else to come on to your existing mortgage.

Stuspillz wrote: »

My predicament is my sister has got to a stage in her life whereas she wants to get her own place, she wants off my mortgage. She has never paid a penny nor does she want any equity. She purely came on to help me keep the place on 'affordability' in the lenders eyes.
Upon talking to the lender, I was told 'You need either £50k to go solo' or to get someone else on to replace her.
Originally I tried my father but that failed as he has his own mortgage that is fairly high in comparison to his income.

On the figures you've given, the lender's attitude is about what I'd expect.

On your sole salary, the lender doesn't want to lend you more than £70k or so.

If somebody else replaces your sister, the lender will want to be sure that person can cover their own expenses *and* your mortgage.

Stuspillz wrote: »

I was wondering/hoping for some advice on what my options are. Realistically I can't get my hands on £50k.

If I sell im back to square one, breaking even, loosing out after selling fees.

Is it possible to have three/four/five names on a mortgage. Would the lender accept a grandparent who has no debt but no income besides a pension? With their own house mortgage free?

I have offered particular friends the option to come on for equal profit when I do decide to sell but all are weary of the liability if it goes wrong and the complications if one wants to sell and one doesn't.

On that note can my sister force me to sell?

I don't think it's fair to even ask your brother - unless he plans to move in with you. If lodger moves out and brother moves in, and if brother has enough income to support the mortgage, that might be a viable option. How much does he actually earn?

Does your sister and her partner earn enough to support their mortgage *plus* yours? If she's a high earner, it's just about possible she could get a mortgage of her own while staying on yours.

I hope you sort something out, but it does sound as though it's going to be very difficult.

Stuspillz

Annisele - Thanks for taking the time to provide your input. It's much appreciated.

My monthly wages vary but £1,400 this February(short month) is the minimum I have taken home in the last two years, done the calculations and the average is £1,580 after tax/ni/pension/health plan.

My brother is a last resort, he takes home £940 a month. His salary may increase if he can progress in the company and they do have a good history of promoting from within, as the did with me. He would like to live with me I know that much, but all in 50/50 would set him back £450 roughly before he's fed himself. Whereas at our parents he is just paying £200 all in.

Factor in that he has no real credit rating as he has only just took out his first pay monthly contract.

Im just exploring all avenues, and was wondering if ive missed something or if someones been in a similar situation and what they did.

My sister and her partners situation, I think they both earn decent money, and have about 15k saved up for a deposit so far which is growing each month. Im really not sure as its not my business but I was surprised the mortgage adviser did say he could help them and help me to keep my place....

theoretica

Another avenue to explore would be if you could get enough rental on the property to secure a buy to let mortgage. You would need to move out and probably lodge somewhere else, but the flat would still be yours when your finances improved. Not sure if it practical, but seems worth exploring.

silvercar

theoretica wrote: »

Another avenue to explore would be if you could get enough rental on the property to secure a buy to let mortgage. You would need to move out and probably lodge somewhere else, but the flat would still be yours when your finances improved. Not sure if it practical, but seems worth exploring.

You need a decent size deposit for a buy to let mortgage.

You could ask current lender for consent to let, that may give sister more options as some lenders will ignore a let property if the rent more than covers the mortgage. This would push the problem 1-3 yrs away but in the mean time sister could secure her own mortgage and that would take the pressure off.