Part selling/ part gifting property to our daughter.

Mojisola

getmore4less said:

Social housing unlikely as you gave away most your assets 
That leaves rentals.

And, because of giving away the money, benefit help with rent won't be possible.

Mutabilisrose

getmore4less said:

Mutabilisrose said:

Cheese1990 said:

Where does your daughter live at the moment? As if she lives at home could she not support with bills etc to the tune of a mortgage and you gift her some of the equity in the property? That's if she is happy to take on the liability and lose the perks of being a ftb 

Do you mean we could add her to the mortgage? I think it has 7 years left. The only problem is I don’t think she will earn enough, unless we can remortgage with her on it. Not sure if you can do that. 

Are you sure that is 7 years left,  for £110k  that would be over £1,300pm on repayment probably closer to £1,400

What rate and what are you paying.

if the plan is you sell/gift the house  and you both live there for a while but at some point you move on and she remains.
Where are you planning to live?
£70k(if any left) is that enough to buy a place,
Mortgage unlikely
Social housing unlikely as you gave away most your assets 
That leaves rentals.

Yes approx 7 years left. We have a mortgage and a secured loan. Mortgage is £1323 and loan £523.  Landmark mortgage rate is 4.14%. I am not sure of the rate on the secured loan.

As for living somewhere else. We have thought of a few options, private rent or maybe convert the double garage. I know we won’t get social housing even if we didn’t gift our property the waiting lists are years long. 

Mutabilisrose

Mojisola said:

getmore4less said:

Social housing unlikely as you gave away most your assets 
That leaves rentals.

And, because of giving away the money, benefit help with rent won't be possible.

I never even thought about social housing or benefits as I know we won’t get either. My pension alone would probably exempt us.

K_S

@mutabilisrose Apologies if I'm missing the original point of doing this (I'm not entirely clear on what you are trying to achieve). But given the extortionate (for your LTV) Landmark rate you are on, and given the numbers (110k loan, daughter's income 18.5k and your pension income of 12k) you could consider remortgaging and adding her to the mortgage and the deeds. Is that an option at all? Just getting the mortgage down to a more reasonable rate should improve your cashflow.

It might be just about doable with a 13 year term (taking you to 70) and with your husband on the mortgage without income

wilfred30

I would've thought that with having £30k in the bank and a pension of almost £1k a month, you have more than enough money to survive for quite some time until you can both get a job (or, at least, one of you).

getmore4less

Mutabilisrose said:

getmore4less said:

Mutabilisrose said:

Cheese1990 said:

Where does your daughter live at the moment? As if she lives at home could she not support with bills etc to the tune of a mortgage and you gift her some of the equity in the property? That's if she is happy to take on the liability and lose the perks of being a ftb 

Do you mean we could add her to the mortgage? I think it has 7 years left. The only problem is I don’t think she will earn enough, unless we can remortgage with her on it. Not sure if you can do that. 

Are you sure that is 7 years left,  for £110k  that would be over £1,300pm on repayment probably closer to £1,400

What rate and what are you paying.

if the plan is you sell/gift the house  and you both live there for a while but at some point you move on and she remains.
Where are you planning to live?
£70k(if any left) is that enough to buy a place,
Mortgage unlikely
Social housing unlikely as you gave away most your assets 
That leaves rentals.

Yes approx 7 years left. We have a mortgage and a secured loan. Mortgage is £1323 and loan £523.  Landmark mortgage rate is 4.14%. I am not sure of the rate on the secured loan.

As for living somewhere else. We have thought of a few options, private rent or maybe convert the double garage. I know we won’t get social housing even if we didn’t gift our property the waiting lists are years long. 

Looks like some history.
That is  a rate over double where it should be for the mortgage

Then a secured loan.

A three way remortgage may work where you sell her a share and look at a longer term probably hubby back in work.

MWT

K_S said:

@mutabilisrose Apologies if I'm missing the original point of doing this (I'm not entirely clear on what you are trying to achieve). But given the extortionate (for your LTV) Landmark rate you are on, and given the numbers (110k loan, daughter's income 18.5k and your pension income of 12k) you could consider remortgaging and adding her to the mortgage and the deeds. Is that an option at all? Just getting the mortgage down to a more reasonable rate should improve your cashflow.

It might be just about doable with a 13 year term (taking you to 70) and with your husband on the mortgage without income

That looks like a solid proposal.

Given this is an ex-Northern Rock mortgage I did wonder if the FCA 'Mortgage Prisoner' rules might help, but I don't think you can add someone to the mortgage if going down that route?

K_S

MWT said:

K_S said:

@mutabilisrose Apologies if I'm missing the original point of doing this (I'm not entirely clear on what you are trying to achieve). But given the extortionate (for your LTV) Landmark rate you are on, and given the numbers (110k loan, daughter's income 18.5k and your pension income of 12k) you could consider remortgaging and adding her to the mortgage and the deeds. Is that an option at all? Just getting the mortgage down to a more reasonable rate should improve your cashflow.

It might be just about doable with a 13 year term (taking you to 70) and with your husband on the mortgage without income

That looks like a solid proposal.

Given this is an ex-Northern Rock mortgage I did wonder if the FCA 'Mortgage Prisoner' rules might help, but I don't think you can add someone to the mortgage if going down that route?

@MWT That might be an option as well though (I might be wrong) I think you need to be able to afford a 'normal' rate which the OP might struggle with on her and husband's joint income. My post has a slight oversight - given that OP's is a pension income, the term could well go beyond 70 so there might be more flexibility in that regard and in bringing down her monthly mortgage payments.

Mutabilisrose

K_S said:

@mutabilisrose Apologies if I'm missing the original point of doing this (I'm not entirely clear on what you are trying to achieve). But given the extortionate (for your LTV) Landmark rate you are on, and given the numbers (110k loan, daughter's income 18.5k and your pension income of 12k) you could consider remortgaging and adding her to the mortgage and the deeds. Is that an option at all? Just getting the mortgage down to a more reasonable rate should improve your cashflow.

It might be just about doable with a 13 year term (taking you to 70) and with your husband on the mortgage without income

I was originally looking for any advice and to se if someone had done anything similar. I know we will have to get some professional advice as well but it’s nice to hear people’s opinions. We seem to always pick the worst products. Our secured loan was originally First Plus. Thanks for the advice,  I will ask if that’s doable.

Mutabilisrose

wilfred30 said:

I would've thought that with having £30k in the bank and a pension of almost £1k a month, you have more than enough money to survive for quite some time until you can both get a job (or, at least, one of you).

Well outr outgoings are £3000 a month so maybe a year or so.