Nwest mortgage offer in, HTB equity loan missed cut off, guarantor mort to bridge the gap needed.

karynS

I'll try and make the back ground to this as condensed as I can; I early bird reserved my dream plot in June 2019 (persimmon, I know a lot of negative reports about Persimmon developer, but the situation of the plot was perfect, right by the sea in our home town), also put my current house up for sale.  Persimmon plot released for sale, but developer refused to accept reservation as current house not yet.  Accepted offer on my house in lockdown1, and officially reserved the plot 20th July 2020 with completion date early 2021, 70% LTV Natwest mortgage offer received from Natwest, and 20% Help to Buy equity loan Authority To Proceed received, plus my 10% cash, all good. My house completed on 5th November, and I was in the position to exchange contracts.  moved into temporary accommodation until house ready.  Then, disaster, on the 6th November persimmon contacted to say the build was even further delayed until late March early April, and sorry but because I need HTB loan to proceed then looks like the deal is off.. I applied to HTB North West and Homes England for an extension due to extenuating circumstances but because I'd not exchanged contracts and only 'officially reserved' after 30th June 2020, I would not qualify for the extension.  So, in steps my lovely Mum, who owns all of her house, and has offered to guarantee the difference of the HTB equity loan of £48k, but I have no idea how that would work - can somebody help me out with this please? Do I need to apply for another mortgage, with my Mum or add it to my Natwest one... ? Is this even possible? need help asap.  

K_S

@karynS Does your mum have any income, what is the maximum cash you can put together for a deposit, what is the maximum you can borrow based on your sole income. 

You mum *may* be able to boost your borrowing power with certain mortgage products, but she will likely need to have some income.

If HTB is not happening, this 70% LTV NatWest offer that you currently have is unlikely to be of much use.

[Deleted User]

There are some lenders that will allow a charge to be placed on mums house to provide a bigger deposit on the case.  
Not the easiest cases to put together so have a good chat with a broker. 

Natwest arent going to be much help im afraid.  They are very vanilla for mortgage options at the moment

karynS

Thanks for your comments.  Mum has around £1300 pmonth income, from private pension.  Has some savings but not enough to cover the full amount.  So, would it be my mortgage company putting the charge on my mums house?

K_S

karynS said:

Thanks for your comments.  Mum has around £1300 pmonth income, from private pension.  Has some savings but not enough to cover the full amount.  So, would it be my mortgage company putting the charge on my mums house?

If you were to get such a product, yes it will be your lender putting a charge on the second property.