Concessionary / General Mortgage Advice

Allybob

Hi, I’m new to this Forum and would really appreciate some advice, I’ve been reading these threads for years now and always come here when looking for info as members seem so helpful.
So here goes.

Currently my husband and I rent a house of my dad. We pay £400 a month, which we have done for the past 3.5years. We are really desperate to get on the property ladder and although we do not intend to remain in this house long, long term, we feel it’s an opportunity to get on the ladder quicker. My dad bought the property for £70k approx. 6 years ago, it is now worth approx. £77k but he has told us he is not interested in making a profit and will sell it to us for what he paid. Great - however we don’t currently have a deposit saved as we got married last year so we are paying as much off our debts as we can every month.

I earn 20k, my husband earns 20k, however just to throw another spanner in the works my husband was declared bankrupt in 2011. He was discharged in 2012, so June 2017 is when it will drop off his credit report. Until then we are keeping everything separate financially so as to not affect my credit report, including applying for a mortgage. So I need to apply for mortgage in my name only, which means they can’t take his salary into consideration. In terms of what we need to borrow for the mortgage (either 63k or 70k), not a problem, but in terms of debt in my name against my salary it looks like I couldn’t afford it (where actually in reality we put both our incomes together and pay for everything comfortably)

I have a 7.2k Loan for my car (paying £300 per month) for another 27 months and 10.6k on Credit cards in my name (paying £700 off per month) Total of 17.8k as it stands

I have bamboozled my brain the last 6 months trying to figure out the quickest and easiest way to get accepted for a mortgage and I keep hitting brick walls.

I’ve heard of Concessionary Mortgages where there’s a gift of equity involved so no deposit needed, but can’t find info on which lenders offer these types of mortgages and also I believe there is some sort of rule regarding tax on this if anything were to happen to my dad in the next 7 years, can anyone shed any light on this?

Another option we have is that my dad can lend me 7k upfront for a deposit, he would sell us the house at value, 77k, then get back the 7k when the sale goes through – but can anyone confirm that he would have to pay Capital Gains Tax on this 7k? And also if there are any rules against doing this?

I have even looked at consolidating my debts to get the payments down to around £275 per month for the next 5 years, just in order to be eligible for a mortgage, then we can put money a side to pay it off early. Again this is a minefield as to which lenders allow how much outgoings per month. I think I’ve tried EVERY lenders mortgage calculator and only a few would accept with this monthly commitment.

I know it seems we are rushing but we are desperate to get on the property ladder ASAP as I am 29 and husband is 33. Besides the fact we want to retire at a decent age we would also like to start a family ASAP, however I am aware getting a mortgage will be even harder if we were to have a child beforehand.

The most frustrating part is our mortgage payments a month would be cheaper than what I pay rent at the moment!!!!

Is it worth speaking to say a Mortgage Broker now or would most people recommend sitting it out, and waiting patiently until I get my debts down to a reasonable amount?

Any advice appreciated, thankyou J

amnblog

You need a mortgage provider that will take


concessionary purchases
bankrupts discharged over 3 years


Do providers such as this exist? Yes they do, and a good broker will be able to tell you if your case can fit with one of them.

Allybob

Thank you for quick reply amnblog,


I'm not really keen on applying for a joint mortgage with my husband before next June 2017, as I don't want our financial records linked. I have kept my credit report in great condition and don't want his bankruptcy to affect mine. Especially as only 16 months until it drops off his report.