Do you think we could get a mortgage...?

booboo85

Current situation is that I live in a mortgaged property that I own with my ex partner, whos now moved out.

He is asking me to sell the property or buy him out, but on my own, i wont get the mortgage, therefore I am looking at the possibility of getting a mortgage with my Dad, for him to move in and to enable me to buy my ex out.

Heres our situation and therefore do you think based on this, I could get a mortgage with my Dad?...

House Situation:

Current Value - Approx 180k

Current Mortgage Balance - Approx 111k (currently in a 5 year deal still).

My situation:

Age - 40

Wages Yearly - Approx 13k

Benefits Received Yearly - Approx £9.6k

Child Benefit Recieved Yearly - Approx 2k

Current Debt - Approx 8k (loan and credit card) - If needed, I could sell my car and pay this off.

I am also a joint owner, with a family member, on another property which is currently on a permanent consent to let, with a long term tennant.

My Dads Situation:

Age - 63 (64 when we apply for mortgage probably).

Yearly Wage - Approx 24k

Pension Recieved Yearly - £7.4k (he took part pension but still works and has no plans to retire fully and he will get his state pension in the next few years)

Current Debt - Approx 11.6k credit card debt.

He's currently renting a property, which he will obviously leave to move in with me.

What is frustrating is that on my own I can afford to live in the house (yes its tight, but i can do it), so to be told i cannot get a mortgage on my own is frustrating.

Thanks in advance.

sammyjammy

How much will you need to buy out your ex partner?  How much are the Early repayment charges on your existing mortgage?  You'll also need to have money for solicitors fees.  All of this will be on top of your existing mortgage repayment.

The fact you have dependant(s) will impact how much you can borrow.

booboo85

sammyjammy said:

How much will you need to buy out your ex partner?  How much are the Early repayment charges on your existing mortgage?  You'll also need to have money for solicitors fees.  All of this will be on top of your existing mortgage repayment.

The fact you have dependant(s) will impact how much you can borrow.

Hi,

Thanks for the message...

Well I would assume my ex would want half of the equity after fees, so what i was thinking was that if we sell the house for £180k, after paying the mortgage, early repayment charge, fees, solicitors etc, it would leave approx £55-60k, so we would get half each (£27.5k-30k), so if I would need a mortgage for £150-152.5k approx.

I have two children, aged 11 and 9.

Brie

Banks may limit the term of the mortgage based on dad's age.  So they might only allow a mortgage to go until he is 70.  (like mine does)  

This has nothing to do with how long he intends to work.  He may need to provide extra information regarding what pension might come into payment when he does stop working.  Plus state pension too.  

As an aside - check to see what you both want to do about wills.  If/when he (or you) dies what happens to the property?  Are there siblings that might expect a share of the property if he goes first?  Or will he be leaving it all to you?

booboo85

Brie said:

Banks may limit the term of the mortgage based on dad's age.  So they might only allow a mortgage to go until he is 70.  (like mine does)  

This has nothing to do with how long he intends to work.  He may need to provide extra information regarding what pension might come into payment when he does stop working.  Plus state pension too.  

As an aside - check to see what you both want to do about wills.  If/when he (or you) dies what happens to the property?  Are there siblings that might expect a share of the property if he goes first?  Or will he be leaving it all to you?

Hi, Thanks for the message.

That was one of my worries, is that if they only allow us a 7 year mortgage which would make the payments not viable.

In terms of the wills, we've agreed that it would be left to me and we can sort that out if it can happen.

kingstreet

Get professional advice now.

A longer term is unlikely to be a problem for several lenders.

silvercar

I would think less than 50/50 may be a better assumption on the grounds that (a) he has some responsibility to pay for housing for his children and (b) being removed from the mortgage has a value to him in not being liable for a debt and being able to get a mortgage himself if he wants to buy. If you can only get a mortgage that will give him less than 50% of the equity he may accept it.

sgthammer

Do you receive any income from the rental property you co-own?

MWT

Definitely one for a good broker, preferably someone local to you and not one of the 'free' online services.

booboo85

sgthammer said:

Do you receive any income from the rental property you co-own?

Personally no, this goes to my family member, but we both so a tax return every year on this.

booboo85

silvercar said:

I would think less than 50/50 may be a better assumption on the grounds that (a) he has some responsibility to pay for housing for his children and (b) being removed from the mortgage has a value to him in not being liable for a debt and being able to get a mortgage himself if he wants to buy. If you can only get a mortgage that will give him less than 50% of the equity he may accept it.

Well the other thing hes said is that if he can get off the mortgage, he wont take any equity. He just wants off it.

I dont know if thats even possible, why he would do that, and what implications it has on me.