Mortgage downfall

Andysandy

There are perfectly understandable reasons for wanting to keep the property, irrespective of the numbers.

This is not an uncommon situation and as ACG and RMA said, lenders will often show flexibility in this scenario, to different degrees. They should be your first port of call.

jessicajb

Retired_Mortgage_Adviser said:

Ok. In that case, very generally speaking, you will (at most) be able to borrow 95% of the value of the property ie 85,500. The remaining 15,500 may need to be made up in cash.

The first avenue I would explore is talking to the current lender. In case of inheriting houses in negative equity, I have known cases where they have agreed to alternative arrangements considering the circumstances.

Who's the current lender?

What's your income and debt, to get an idea of whether you meet affordability for an 85k repayment mortgage and if there's enough leeway that the current lender may consider alternative arrangements.

The current lender is NatWest, we went to them and we can get a mortgage of £120k, we will go back and speak to them and see what can be arranged, thank you very much for your help! 

AnotherJoe

My commiserations.

Did your father have any other money? Essentially your fathers estate owes £11k to the mortgage co. Who is the executor, they should be dealing with that. (was there life policy to cover the mortgage?)

If the money is not there you are certainly not obligated to pay it,  and should be able to buy the house at its valuation, which with you as sitting tenants you'd be in a good position to buy.

No one is going to give you a £101k mortgage on a £90k house.