Advice Needed Please

bluelass

Sorry to have to post this as its probably obvious but I just need help. My hubbys son (is 30) recently applied for a mortgage its not a big sum involved its only for fifty thousand pounds as someone is letting him buy a property cheap. He applied for a mortgage with his bank but when he came out of work for a short time in 2013 he had his car loan payments paid for by the finance company as he was covered for unemployment and illness. Now the bank say this has come up as a issue on his credit file and he will have to wait two weeks to see if the bank manager can see if he can offer a mortgage and disregard this issue. Mine and my hubbys home is mortgage free and hubby says its only a small amount and he could remortgage to buy this house for his son and hub says his son should have it paid back in around six years but I don't think he will. He has a young child with his partner they both work but she spends money on things like 30 cigs a day and loads of boxes of chocolates. Also if he decides he doesn't want to pay the money back or comes out of work we will have to pay it. My hubby says he could have an agreement drawn up and if his son defaults the bank will reposess his home not ours if he doesn't pay the £450 a month and should my hubby die his son will have to continue paying me by standing order until he pays what he owes. I don't think it would work like that somehow I do hope not but if say my hub did get ill or pass away his son could tell me to stick it and I end up with no home or only half of what our house is worth now (currently its market value is about one hundred and twenty thousand). With them having a child if they stopped paying they could argue the fact and it would be us or me who loses out am I correct?

Thrugelmir

If you borrow money secured against your property. It's your property that is at risk. Any private arrangement you may have is of no interest to a lender. Getting your money out of the other property is your problem.

19lottie82

It's certainly very risky. I'd say only "lend" your stepson the money if you can afford to lose it, but if you have to re mortgage your home to do so, it's pretty obvious you can't.

Also, if he stopped paying, what would happen to your and your husbands relationship with him, and your grandchild?

It's really not worth the risk.

bluelass

Another thing wouldn't my signature as well as my husbands be required for this? Im sure my name is on the deeds to our house this time round. When we bought our first house together in 1998 we we not married then so the building society didn't add my name to any of the paperwork. However when we moved to our new house the mortgage was paid off on our previous home and we bought this one outright with the proceeds. Obviously we were married by this time (in 2000 we got wed) so therefore the solicitor doing the conveyancing would have added both our names to the deeds. What would happen if my signature was forged to enable and I wasn't aware a remortgage went ahead? His sons mother my hubs first wife has a house but says she cant remortgage neither can his sons partners parents so it is more than likely they will expect it to come from us. Everyone thinks we are loaded for some reason. And as I mentioned previously they could refuse to pay then bring the child into an argument for letting them keep their house and we would lose out.

libf

You need to make sure everyone involved knows that you're not happy with this and that you will prosecute anyone who attempts to fake your signature on paperwork.

Can't they just stay where they are if they can't get a mortgage?

bluelass

libf wrote: »

You need to make sure everyone involved knows that you're not happy with this and that you will prosecute anyone who attempts to fake your signature on paperwork.

Can't they just stay where they are if they can't get a mortgage?

They want to have their own house. Fifty thousand is a good deal for a large 3 bed terrace and they are paying over £400 a month to rent a small 2 bed terraced house now so it would make sense to get a mortgage for the same amount than pay rent. They could have carried on living with her parents but left 2 3 years ago when she was expecting, they say her mum was interfering a lot but the house they want to buy in next door to her parents LOL. If they would have stayed instead of moving out they would have had about twenty grand by now and had a good deposit. Like I say she has no sense where finances are concerned.

libf

bluelass wrote: »

They want to have their own house. Fifty thousand is a good deal for a large 3 bed terrace and they are paying over £400 a month to rent a small 2 bed terraced house now so it would make sense to get a mortgage for the same amount than pay rent. They could have carried on living with her parents but left 2 3 years ago when she was expecting, they say her mum was interfering a lot but the house they want to buy in next door to her parents LOL. If they would have stayed instead of moving out they would have had about twenty grand by now and had a good deposit. Like I say she has no sense where finances are concerned.

It doesn't matter how good a deal it is if they don't have the funds for it! And if they're not about to made homeless or something then it's also not fair to expect you to just stump up the cash. Stand your ground and don't endanger the roof over your head so they can get their own over theirs.

bluelass

Right my stepson has decided not to go ahead and buy this house. The seller has now decided she wants seventy thousand instead and it would require at least another 20 thousand to put it right, it is not in a condition where you could just move into it. They have decided to save until next year but are still keeping an appointment with an independent mortgage advisor just to see how much they could get. Now my SS's partner has decided she wants another child even though they they already have to pay child care for one they have now under three. She assumes her parents and us should help if she just wants to do it.