Mortgage help please - my family is gonna get made homeless

Smissah

DCFC79 wrote: »

£24k is a decent amount (but it depends where you live) even better if you can combine it with your girlfriends salary and you can get somewhere decent.


Your 2 brothers will be fine with moving.

Why would new jobs need to be found ?
Look for a new property that's nearby.

Re the hoarding its better he gets rid of stuff now.


Don't lend them the money, your wanting to get your own place.

I live in Reading, just west of London - it's pretty expensive here

my girlfriend is studying at the moment so we're just saving. hopefully by this time next year or the year after she'll be qualified and on a similar salary

My younger brother is on an apprentice salary so can't really move out
my older brother has been living on up northish since graduating and is on sub £20k salary. he might find it hard to get a relevant and well paid job down here in Reading

Because the current house is close to everyone's work and some people (like my little brother) start work super early - so commuting. Also, my mum has been in that role for jobs, isn't partcularly computer savvy or up to date with her skillset to really get any jobs wth ease. just being realistic.

Finchy2018

There are cheaper areas in Reading (Lived here for 20 odd years, and worked in the industry) and going out in the outskirts. The is also PLENTY of choice when it comes to rentals and Romans and the like also advertise no deposit properties.

They can find another house to rent if they can't afford to purchase. How much are you currently paying?

Candyapple

Smissah wrote: »

my dad is 60 and my mum is 57

they are currently looking to have my older brother (27 going from job to job but is looking to move to home town/home to get a career and save), younger brother (in his final year as an apprentice at a well-known car brand) and mum (old, manager of local university cafe) on the mortgage because I refused.

I'm on £24k, relative to my friends, it's not a lot. I think all three people above earn less than £20K.

You earn £24k.

1. You have no hope of getting a £15k loan on that salary as you would fail on affordability.

2. You also wouldn’t be able to apply for the loan because no lender allows ‘loan for purchase or deposit for a property’ as an option, which in turn means if you did think about doing something stupid and lying and applying and saying it was for a car or something, you would more than likely get a CIFAS marker for application fraud. You could then kiss goodbye to your home owning dreams.

The above aside,
1. How did they plan to get your older brother on the mortgage if a) he doesn’t even live in Reading and b) he hasn’t even got a job there yet? Most lenders require you to not be in probation period for a job and would require at least 3 or 6 months’ pay slips.

2. Your mum's age would limit the number of years of being able to get a mortgage so it wouldn’t even be the bog standard 25 years, it might be 15 or less which would mean much higher monthly repayments. How would they afford this, plus the monthly repayments back to you for this dream loan they want you to take out?

You don’t have to be the villain here and it’s unfair of your family to put that on you. Explain the above to them. This is your parents’ failure, not yours. All too little too late I’m afraid.

All you can do now is to help your dad sell whatever he has hoarded and help them to look for a 2 bed house to rent (your parents and your younger apprentice brother) in the local area, or a 3 bed if you intend to stay with them. You should then all as adults contribute towards the rent until both you and your younger brother can move out and then your parents can in turn downsize again to perhaps a 1 bed flat so that they don’t have to worry about paying out a lot of money in rent.

Smissah

Your post doesn’t answer any questions.

Who is the mortgage going to be consisting of: you, your mum and your dad? Anyone else?

What are all of your salaries?

older brother is around 17k, younger is 14k, not sure about mum but between 17-14k, dad doesnt really have a salary.
How much deposit have you all managed to come up with individually?

What is the asking price of the house? £220K

Do you have any other siblings living with your parents? younger brother, sister and me

How many bedrooms does the house have? You make it sound like there are no other similar properties to rent in the area. it has 2 actual bedrooms but it is being used so as to have 3/4. realisticly, we can't afford an actual 3/4 bedroom house

Mojisola

Smissah wrote: »

it has 2 actual bedrooms but it is being used so as to have 3/4. realisticly, we can't afford an actual 3/4 bedroom house

Five people living in a 2-bed house and one of them is a hoarder.

Smissah

Sorry, I made the account yesterday and getting to grips with how to use it

silvercar

Smissah wrote: »

Sorry, I made the account yesterday and getting to grips with how to use it

You're doing fine.

Hopefully the advice you are getting helps you decide.

Why not suggest moving out so they can rent a smaller place?

They really do need to check if their tenancy agreement is an AST or something that gives them more rights.

ScottishSaver14

OP, you seem like a nice young person. You have your whole life ahead of you and I'm concerned about how this seems to have fallen on you.

You're earning what seems to be the highest salary in the family. I assume you have worked hard to achieve that. You have plans for your future with your partner.

PLEASE do not set yourself on fire to keep your family warm. They have options. You, as a family, have options. Sentiment about this particular house has to take a backseat. So people have to get used to different commutes and your dad will have to finally address his hoarding issues..so be it. However this situation works out it is NOT your fault that what happens happens.

Lungboy

OP you still haven't said what kind of tenancy your parents have.

ian1246

Under no circumstances take out a £15,000 loan for your parents - you have your whole life ahead of you, don't let your parents mistakes & short-sightedness ruin your own opportunity to get on the property ladder.

At the end of the day, they ve had their whole life to sort out their housing situation - both before & after you and your siblings came along. Instead, they haven't and now they are nearing the end of their working careers (approaching 60's). I'd hazard a guess, from what you have said about their finances/personal circumstances so far, that they likely have inadequate pensions also. That basically means a Mortgage simply isn't going to happen and they are likely going to struggle massively in retirement - at the very least, if they don't own their own house when they hit state-pension age they ll be eligible for various government support for their accomodation costs (vs. still paying a mortgage if they do end up buying this house, which would render them unable to get government support for accomodation costs - so their limited pensions would have to stretch further to cover mortgage payments).

The best thing you can do now is look out for yourself - get yourself and your future wife onto the property ladder (locking in for a decent fixed term whilst interest rates are low) and learn from your parents mistakes (i.e. renting all their life). Then, once your on the property ladder and you have a good idea what your future accomodation costs (mortgage) will be, perhaps then you ll be in a position to help your parents out a little if they are struggling in retirement.

But if you take out a loan for this house... you'll be torpedoing your and your future wife's chances of getting onto the property ladder any time soon. Not to mention potentially loosing your first time buyer opportunities. Put you and your future wife first, don't sacrifice your own future opportunities to rectify your parents mistakes.