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Concessions Mortgage
SteveSleigh
Posts: 3 Newbie
Hi
Had an appointment with Barclays today and left totally disappointed.
My situation is my parents want to sell me and my partner a house for £50k, the property is valued in excess of £200k.
Great, should be easy I thought, but no. I have a good credit rating A1 but between us we have nearly £18k on two credit cards.
My initial thought was I would like to borrow £68k enough to pay them off and my parents.
Been told you can not borrow more than the purchase price (even though the LTV is less than 40%) and also I will still require a deposit.
When affordablity was put through (partners and my salary are not particularly high and including the credit cards) the answer was no.
Although we take home around £1800/£1900 and a potential mortgage would be £300/£400 it was considered risky!
Been told by a friend that Halifax are just the same too.
Any help would be appreciated.
Thank you
Had an appointment with Barclays today and left totally disappointed.
My situation is my parents want to sell me and my partner a house for £50k, the property is valued in excess of £200k.
Great, should be easy I thought, but no. I have a good credit rating A1 but between us we have nearly £18k on two credit cards.
My initial thought was I would like to borrow £68k enough to pay them off and my parents.
Been told you can not borrow more than the purchase price (even though the LTV is less than 40%) and also I will still require a deposit.
When affordablity was put through (partners and my salary are not particularly high and including the credit cards) the answer was no.
Although we take home around £1800/£1900 and a potential mortgage would be £300/£400 it was considered risky!
Been told by a friend that Halifax are just the same too.
Any help would be appreciated.
Thank you
0
Comments
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SteveSleigh wrote: »Although we take home around £1800/£1900 and a potential mortgage would be £300/£400 it was considered risky!
That's not the concern. How you manage your finances is. £18k of debt on your joint annual incomes is significant.0 -
Ahh I see, so even though I use them and pay them it’s still considered significant. Makes sense.0
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Barclays and a few other lenders have a Debt to income calculation - if it is above a certain percentage of your income (anywhere from around 30-50%) it is an outright decline.
Speak to a broker or try another lender and you should be fine.
One thing to bare in mind is your parents age and whether they are likely to need care - it could be seen as disposing of assets and in turn could come back to bite. It is not a problem doing what you are doing in principle, but if it happens at a "convenient" time or for the reason of avoiding care fees then it is just worth thinking about.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Thanks for the reply. I will try a mortgage broker.
My parents live in Spain, own a property out there. I hear they have to live at least 7 years from the point of sale? Otherwise it will be classed as an asset. But I will look into that more.0 -
7 years relates to inheritance tax.
Look up deprivation of assets.0
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