From Joint to Sole Mortgage - Not enough affordability what are my options?

KR23

Hello and apologies if this has been asked before,

I bought with my sister who wants out of the mortgage, I have been paying it by myself and can evidence this and can buy her out. I don't have the affordability on paper to pay the remainder 210K on my own.

Weirdly I didn't pass Halifax's credit checks either for a mortgage on my own (have checked my record no adverse events, Halifax can't say why).

Their Underwriters are looking at it but from my research it is likely they will decline. I have spoken to a broker through L&C and I'm also not having much luck.

Are there any lenders that offer generous affordability? 

I do have a partner I can take out a mortgage with but they have adverse credit (1x default paid and settled, 4 years old) Halifax have refused to lend to us. 

Any advice on what I can do would be really appreciated please.

N.B. I work two jobs, one full time and one part time, totaling ~40k, so I can't do much more to increase my income. 

jlfrs01

I think the reality is you will be unable to take out a mortgage under your own steam based on lenders' affordability. If that is the case your options are either to sell up or to keep your sister on the mortgage (in which case she is still iable for the debt even if she isn't paying towards the mortgage). You can change her stake in the property.

This guide can shed some light on your options (it's aimed at couples splitting up with a joint stake in a property but applies in your case I think):

https://www.moneysupermarket.com/mortgages/joint-mortgages-separation/

housebuyer143

You might have to go in with your partner at an adverse lender as this is going to be the only way that you meet affordability.

KR23

jlfrs01 said:

I think the reality is you will be unable to take out a mortgage under your own steam based on lenders' affordability. If that is the case your options are either to sell up or to keep your sister on the mortgage (in which case she is still iable for the debt even if she isn't paying towards the mortgage). You can change her stake in the property.

This guide can shed some light on your options (it's aimed at couples splitting up with a joint stake in a property but applies in your case I think):

Thank you for your response. My sister is much older and so we're capped at a 21 year term whereas I can borrow for another 35 years making my payments lower, that was why I was really keen to go it alone really. But thank you for the link, I like the look of guarantor mortgages and have family that can act as but can't seem to see many advertised on lenders sites 

KR23

housebuyer143 said:

You might have to go in with your partner at an adverse lender as this is going to be the only way that you meet affordability.

Thank you for replying. I quite like banking with Halifax, if we went to an adverse lender, how easy would it be would you say to move the mortgage back once my partners credit improves? 

ACG

You are wanting over 5x your own income, thats quite unlikely. 
You could probably look at doing it jointly with your new partner, I dont think you would need an adverse lender. One 4 year old default is not really adverse. Its just not pick of the lenders. 

If L&C are struggling, look elsewhere. This should be bread and butter stuff for an experienced broker. 

Hoenir

KR23 said:

N.B. I work two jobs, one full time and one part time, totaling ~40k, so I can't do much more to increase my income. 

This may well be regarded as unsustainable. Eventually will take it's toil. 

KR23

ACG said:

You are wanting over 5x your own income, thats quite unlikely. 
You could probably look at doing it jointly with your new partner, I dont think you would need an adverse lender. One 4 year old default is not really adverse. Its just not pick of the lenders. 

If L&C are struggling, look elsewhere. This should be bread and butter stuff for an experienced broker. 

Thank you for replying, is there any literature anywhere that classifies what is adverse and what isn't? Some things I read and it says lenders don't really care after 3 years if the default has been settled, but in practice I find some do. I know it may not be an exact science but any light you can shed would be very much appreciated

ACG

I suppose if we are being official, the default is adverse. However there is no definition, even a late payment is adverse.

The older it is, smaller, satisfaction date (if it has been satisfied) the less of an impact it will have. Some lenders are black and white on what they wont accept and what they "can" (can, not WILL) accept but others (halifax as an example) leave it down to scoring to decide.