Mortgage advice needed

lawn_75

Hi,

Just need a bit of advice.

I'm rebuilding my life after bankruptcy that is due to be removed from my credit file in October this year. Once gone my credit history will be clear and I only have 1 credit card, which has a £1,500 limit and is paid in full every month (£200 spend). I earn £38k +10% bonus and my wife is self employed and earns £8k

I'm in a pretty unique situation in that my brother purchased a property 2 years ago for us to live in for £180k and we agreed once the bankruptcy left my file and I could secure a mortgage I could buy the house for £190k, The current market value is £220k.

Am I right in thinking I have 2 options for a mortgage either gifted deposit or 100% mortgage for the full £190k?

Alternatively could I take 100% mortgage for the £220k, with my brother giving me back the difference between the agreed sell and mortgage value (£30k) which I could then use to overpay the mortgage for the initial term so when I remortgage 2 years down the line I'm at a respectable LTV?

Any thoughts or comments will be really appreciated.

Thanks,

glentoran99

lawn_75 wrote: »

Hi,

Just need a bit of advice.

I'm rebuilding my life after bankruptcy that is due to be removed from my credit file in October this year. Once gone my credit history will be clear and I only have 1 credit card, which has a £1,500 limit and is paid in full every month (£200 spend). I earn £38k +10% bonus and my wife is self employed and earns £8k

I'm in a pretty unique situation in that my brother purchased a property 2 years ago for us to live in for £180k and we agreed once the bankruptcy left my file and I could secure a mortgage I could buy the house for £190k, The current market value is £220k.

Am I right in thinking I have 2 options for a mortgage either gifted deposit or 100% mortgage for the full £190k?

Alternatively could I take 100% mortgage for the £220k, with my brother giving me back the difference between the agreed sell and mortgage value (£30k) which I could then use to overpay the mortgage for the initial term so when I remortgage 2 years down the line I'm at a respectable LTV?

Any thoughts or comments will be really appreciated.

Thanks,

No chance of 100% mortgage

lawn_75

could you expand, is this based on experience?

glentoran99

lawn_75 wrote: »

could you expand, is this based on experience?

there are no mortgage providers that will provide 100% mortgage they are gone from the market.


You may have options with gifted equity you would need to consult with a broker though, but you will not be able to simply borrow 190k for a 190k purchase price

lawn_75

OK, fair enough.

Would this work with the mortgage companies. 95% LTV on £220 = £11k deposit. I borrow £11k from my brother use it as deposit on £220k mortgage. Brother gives me back £220k - £11k deposit - £190k (agreed sell price) = £19k. I have a 95% LTV mortgage which I can overpay using the left over £19k over the initial 2 year term. not saying I need to relay all my ideas to the bank

Whats my brother made out it? I've been renting a house he bought for me @ £1k p/m for 2 years (he has no mortgage), and will continue doing so until I can get myself back on the ladder.

amnblog

Ignore the posts above.

If the place in genuinely worth £220,000 and your brother will sell it to you for £190,000, you can buy it without putting in cash provided:

Your brother is not living with you, or will leave
Your recent credit history is up to scratch
Your income is sufficient
You choose the right lender

A smart buyer will engage a smart broker.

glentoran99

amnblog wrote: »

Ignore the posts above.

If the place in genuinely worth £220,000 and your brother will sell it to you for £190,000, you can buy it without putting in case provided:

Your brother is not living with you, or will leave
Your recent credit history is up to scratch
Your income is sufficient
You choose the right lender

A smart buyer will engage a smart broker.

What lender do you know of is going to lend 30000 more than the actual sale price?


what the op is planning to do is possible, but not a simple as suggested

amnblog

glentoran99 wrote: »

what the op is planning to do is possible, but not a simple as suggested

Interesting, two posts ago you suggested our OP 'would not be able to borrow £190,000 on £190,000 purchase price'

I stand by my post above. I did one last week and I will probably do one next week.

glentoran99

amnblog wrote: »

Interesting, two posts ago you suggested our OP 'would not be able to borrow £190,000 on £190,000 purchase price'

I stand by my post above. I did one last week and I will probably do one next week.

I said


"You may have options with gifted equity you would need to consult with a broker though, but you will not be able to simply borrow 190k for a 190k purchase price "




but im interested, what lender was this? and it was a simple borrow £190k and the documented sale price was £190k for 100% equity?

amnblog

Perhaps 7 lenders will do the lending in principle without cash going in.

Perhaps 4 or 5 will consider our posters credit history.

glentoran99

amnblog wrote: »

Perhaps 7 lenders will do the lending in principle without cash going in.

Perhaps 4 or 5 will consider our posters credit history.

And is It a simple borrow 190k for 100% equity? Or is there a gifted equity/deposit element as I suggested?