trying to help brother - mortgage advice

ChillyP

Hi, 

I am trying to help my brother sort out his mortage options. If you have seen my other posts then you will appreiate the irony of me trying to help anyone else financially!

Brother is 37 and currently lives in a mortgaged house with his wife and kids. He owes £104k and property is valued at approx £275k. They want to move to live nearer our parents which will mean they will need to spend about £40k more to get an equivalent property. They have seen a house valued at £320k so they would need a mortgage ofaround 150K. They have a joint income of 90k but they do have a couple of loans and credit cards totalling 30k which I expect will be an issue. 

2 years ago he had a mental health crisis and got into a bit of a mess. As a result of this he now has 6 late payment markers on his credit file. The most recent one is 23 months ago. He has been up to date with everything for the last two years. 

What is the likelihood of them securing a mortgage? Are they better to wait another year or two?

Strummer22

My advice would be for them to talk to a mortgage broker. Lay out all of the info and credit history and the broker will advise what is available to them. 

I doubt it'll be impossible for them to get a mortgage.

K_S

@chillyp
Reasonably young (so there is good flexibility with term), looking to borrow less than 2x income at <60% LTV, a bit of background debt (but unlikely to be a showstopper given the rest of the details), only issue with credit history is a few late payments that are almost 2 years old now.

Based on the above -

Likelihood of getting a mortgage - as good as it can be. I would expect them to get a mainstream rate or at worst a mainstream-ish rate depending on the details and what exactly is in the credit report.

Are they better to wait another year or two? - Impossible to say as that would depend on where house prices are in a year or two, where mortgage rates are, lending appetite, etc.

As the poster above said, I would recommend speaking to a broker. The MSE guide here can help you find one https://www.moneysavingexpert.com/mortgages/best-mortgages-cashback/#step3 . Alternatively, ask friends/family/colleagues for a recommendation.

Good luck!

ChillyP said:

Hi, 

I am trying to help my brother sort out his mortage options. If you have seen my other posts then you will appreiate the irony of me trying to help anyone else financially!

Brother is 37 and currently lives in a mortgaged house with his wife and kids. He owes £104k and property is valued at approx £275k. They want to move to live nearer our parents which will mean they will need to spend about £40k more to get an equivalent property. They have seen a house valued at £320k so they would need a mortgage ofaround 150K. They have a joint income of 90k but they do have a couple of loans and credit cards totalling 30k which I expect will be an issue. 

2 years ago he had a mental health crisis and got into a bit of a mess. As a result of this he now has 6 late payment markers on his credit file. The most recent one is 23 months ago. He has been up to date with everything for the last two years. 

What is the likelihood of them securing a mortgage? Are they better to wait another year or two?