Unusual mortgage situation please help

Cheryl2022

Hi, just wondered if anyone can help or advise. 

Me and my OH are wanting to buy a house together and have 81k in joint income, my OH has a shared ownership property that he's selling and we will pay any remaining debts off with the equity, might have 1k in credit card and then a 5% deposit for a new home. 

Our credit ratings are okay but not brilliant I have a few old satisfied defaults from about 4 years ago when I had to leave work to become a carer for my gran but since then I've worked really hard to build my credit score back up.

This is the issue that is causing me so much anxiety, so here goes.... I stupidly agreed to go on my parents mortgage in name only with my dad as my mum didn't have enough income when I was 18 and I didn't realise how much this would affect the rest of my life as they have now paid the mortgage off but took out an unsecured loan years ago from the mortgage company and then defaulted on it. This was for £16k and was registered in 2022. It only shows up on a transunion credit report and so it took me years to see it as I have been using Experian to build my credit score! I know most companies use Experian and equifax so wondered what any chances of getting a mortgage and finally owning my own home 🏠 

Please help! Thank you so much for reading ❤️

bobster2

Do you mean you were a joint borrower for this unsecured loan - not just the mortgage?

Cheryl2022

Yes but I wasn't aware at the time, I remember signed loads of forms but I was young and I just did what they asked cos I wanted to help but now it's backfired 

sheramber

Is the loan still outstanding?

If you are on the deeds of the property then you will have to pay the additional stamp if you buy another property as you will own two properties.

When/ if your parents house is sold you will have  to pay Capital Gains Tax on the increase in value from purchase price of your share  to the selling  price of the value. 

Cheryl2022

The loan is still outstanding yes it's defaulted and they haven't paid it by the looks of it

Cheryl2022

I don't know about the deeds can I remove my name if I am? 

silvercar

Cheryl2022 said:

I don't know about the deeds can I remove my name if I am? 

Yes if there is no mortgage. If there is a mortgage you will need the consent of the lender.

you need to find out if your name was on the unsecured loan, as it will effect your credit rating. If it was definitely unsecured then it won’t directly tie you to your parents home.

I suggest downloading the deeds from the official land registry website. It will cost £7 and tell you if you are registered as an owner.  Otherwise it may be you were a guarantor for their mortgage or a joint borrower, single proprietor set up.

silvercar

sheramber said:

Is the loan still outstanding?

If you are on the deeds of the property then you will have to pay the additional stamp if you buy another property as you will own two properties.

When/ if your parents house is sold you will have  to pay Capital Gains Tax on the increase in value from purchase price of your share  to the selling  price of the value. 

The CGT will be less if OP was living there at the time, though there still may be a CGT bill unless OP can argue she was only on the deeds to get the mortgage and was not a beneficial owner.

Cheryl2022

Yes there's no mortgage they paid that off. The loan is definitely unsecured and shows on my credit file with transunion only. It has affected my credit rating but doesn't show on Experian or equifax so if I remove myself off the deeds if on them will I be able to get a mortgage with a lender who uses equifax or experian? 

silvercar

Cheryl2022 said:

Yes there's no mortgage they paid that off. The loan is definitely unsecured and shows on my credit file with transunion only. It has affected my credit rating but doesn't show on Experian or equifax so if I remove myself off the deeds if on them will I be able to get a mortgage with a lender who uses equifax or experian? 

It could be that the home was transferred back to their name after the mortgage was cleared. You need to check this.

As for CGT, do you have some rough dates? When your name was added to the property and when you moved out.

silvercar

I’ll move this thread to the mortgage board and close the identical thread over there. Best to keep everything in one place.