mortgage advice, large deposit and mortgage free equity available, help?

Fistatron

Hey everyone,

just posting a quick question that some of the mortgage advisor types on here could enlighten me a little.

background info[u/]

Me and my wife are currently looking at moving house the price range in the area we are looking at is £100,000 to 170,000. we need to move ideally before jan 2017 (baby on the way).

* our current home is in my wife's name, mortgage free, and worth £60,000-65,000 estimate based on property in our street.
* My mother-in-law is going to gift us £70,000 for a very health deposite (very lucky I know).
* Currently my wife is not employed (as of april this year), and has not managed to get meaningful employment, since that period.
* I have been in full time employment since finishing a doctorate and have a good job £30,756 PA + 10% bonus since dec 2013
* I have recently checked my credit rating and it is very poor due to a default for £121 from oct 2014 placed by T-mobile (am currently disputing and attempting to have default removed, i have another thread detailing it)
* we need to be in a position to move before 2017 (wife is now pregnant), so credit repair options for me are limited due to time constraints.

My question is do you think me and my wife would be able to get a mortgage where i'm the sole earner, utilising the £70,000 deposit and the house (value £60,000-65,000) as equity/security.

I used the credit matching tool on experian to see if i would qualify for any mortgages using my earnings and the £70,000 deposit and it say that there were no suitable mortgages available

I haven't told my wife about the issue with my credit file yet as i don't want to panic her. I feel like such a failure and i have let her and my unborn kid down

I feel so hopeless about the whole situation atm

tlc678910

Hi, you could look to buy at the bottom end of prices for the area you want to move to and buy the house outright.

You could delay the move a year or two while you get the credit issue sorted out. Babies really don't require much room - the impact on their quality of life will be very little for their first year or two.

Are there other reasons you need to move rather than simply upgrading or more space?
Tlc

getmore4less

if you don't sell or mortgage your current place you don't have anything to put towards the new one except the gift deposit.

sell and £70k gift deposit you only need to borrow £50k and have enough left over to pay all the bills(if it is really worth £60k+)

if you want to Keep the place you need a strategy to release the equity to pay for the new house.

Fistatron

tlc678910 wrote: »

Hi, you could look to buy at the bottom end of prices for the area you want to move to and buy the house outright.

You could delay the move a year or two while you get the credit issue sorted out. Babies really don't require much room - the impact on their quality of life will be very little for their first year or two.

Are there other reasons you need to move rather than simply upgrading or more space?
Tlc

My wife has a mild disability where she has limited moment for her left arm. Having a baby is going to be a challenge so we thought it best to move close to my parents and sister (who is a midwife) they both live on the same road. That way if my wife does need extra support my family can help especially when I go back to work.

Our current home is a two bed terrace and the stairs are very steep which could pose a problem for my wife carrying a baby up and down the stairs.

My real worried is that I won't even be eligible for even a sub-prime mortgage all because of a default for £121 from t-mobile which I completely dispute it being valid in the first place (see other post for details).

Thanks for the input I really do appreciate it

Fistatron

getmore4less wrote: »

if you don't sell or mortgage your current place you don't have anything to put towards the new one except the gift deposit.

sell and £70k gift deposit you only need to borrow £50k and have enough left over to pay all the bills(if it is really worth £60k+)

if you want to Keep the place you need a strategy to release the equity to pay for the new house.

We don't want to keep the place the rental market in the area is saturated and the returns wouldn't be ideal I don't think. The property value is base on another house in the road currently for sale.

My worry is that we would need to do a joint mortgage, with my current credit issue and my wife employment status that we simple would be seen to be too high risk, even though is terms of affordability I could easily afford to pay a small mortgage for 50-60k we won't be able to get it :sad:

amnblog

A tool on the Experian website is misleading and a waste of time. They are not mortgage brokers.

There are mortgage lenders that will manage mobile phone defaults as you describe.

When you are ready, talk to someone who knows what they are doing - engage a mortgage broker.

ViolaLass

If you don't want to keep the house, can't you sell it and use the extra £70k to buy outright? Problem solved.

Fistatron

amnblog wrote: »

A tool on the Experian website is misleading and a waste of time. They are not mortgage brokers.

There are mortgage lenders that will manage mobile phone defaults as you describe.

When you are ready, talk to someone who knows what they are doing - engage a mortgage broker.

so in your opinion it may not be as fatal as i was thinking.

can you disclose these mortgage brokers either here or in a PM? not sure what the forums policy is in these situations

Thanks

Thrugelmir

Why not sell the existing property?

waveneygnome

The way I read it, they ARE planning on selling existing property:

60k - sale of unencumbered property
70k - gift
= 130k

Want new house circa £170k = so looking for a mortgage around 50k

One for a broker. There is hope.

ViolaLass

waveneygnome wrote: »

The way I read it, they ARE planning on selling existing property:

60k - sale of unencumbered property
70k - gift
= 130k

Want new house circa £170k = so looking for a mortgage around 50k

One for a broker. There is hope.

But if a mortgage is tricky, why not buy a cheaper property (they said £100-170k would do) and circumvent the problem?