First time buyer 30% deposit bad history

attagirl_2

Hi there,

My dh and I are hoping to get a mortgage in the next few weeks, the house is worth 90k, we're looking to get a 60k mortgage - the house has been left in a will to my father and he's looking to split the house 3 ways with him, me and my sister.

My husband had a CCJ 5 years ago (council tax, it was then subject to an attachment of earnings order, paid off with no further problems). He also missed 1 credit card payment with capital one a couple of months ago , the balance is now zero.

He has a £4000 loan with barclays, and I have a £6000 loan with Lloyds.

Basically we're not sure wether to pay off the loans and then go for a mortgage. We're currently paying £400 pm rent, and our combined income is £32k. I should also mention that we're worried we wont actually get a mortgage!

Any advice would be very gratefully received

AG xxx

bryanb

Is the 30% deposit your share or is it cash?

attagirl_2

It's our share.

We are still looking around at other houses too, so obviously if my dad sold the house, we'd have £30k cash, which is I suppose where the paying off the loans comes into play.

Do you think we'd be better off buying somewhere else and being able to pay off the loans with our share of the cash?

beecher

How does it work when you don't actually have £30,000 deposit, but are really buying it at a 30% discount?

Do you like the house, or are there others at the same price you'd prefer?

neas

Seems a complicated history. Is your dad also intending to get a 30k mortgage on a 90k property 3 way split? Or is he payinf with cash? or does he own the property outright?

attagirl_2

he was left the property in a will, it was his mothers house. He already owns his own home outright, and just wants his share in cash from his mothers property to put away for a rainy day, my sister just wants her share in cash also.

Sorry, should have phrased it as a 30k discount on this property / 30k cash if we buy elsewhere.

We do actually love this house.

Sorry for not giving a clear explanation in my earlier posts - doesn't take much to confuse me

neas

I think i get you:

1. You inherited a house as a group... splitting it 3 ways
2. Your dad wants 30k.. and your sister wants 30k in cash so you can move into it and have it as your own right?
3. So you have 33% equity in the house already i guess.

This is a weird scenario, im sure someone will be along shortly to discuss how you can get a mortgage to 'buyout' relative from an inherited property.

beecher

I don't have a clue how that works, but I'm sure someone will

attagirl_2

neas wrote: »

I think i get you:

1. You inherited a house as a group... splitting it 3 ways
2. Your dad wants 30k.. and your sister wants 30k in cash so you can move into it and have it as your own right?
3. So you have 33% equity in the house already i guess.

This is a weird scenario, im sure someone will be along shortly to discuss how you can get a mortgage to 'buyout' relative from an inherited property.

yeeeeeess :j :j Thank you so much neas for putting it into normal language much better than my bumbling posts

AG xx

neas

Theres another issue to consider here too. If your dad inherited it. At the moment he owns the house.

Or do you currently, legally own the house 3 ways? Or does your dad intend to 'gift' parts of the house to you?

This would complicate it more i guess.

attagirl_2

neas wrote: »

Theres another issue to consider here too. If your dad inherited it. At the moment he owns the house.

Or do you currently, legally own the house 3 ways? Or does your dad intend to 'gift' parts of the house to you?

This would complicate it more i guess.

he's the only one in the will, as the will was made in 1978 before we were born, so the house is being left to him, and he'll be gifting the bits to my sister and I...

gee this is becoming more complicated by every post so sorry guys Thanks for the help so far, it's certainly giving me more to think about

AG xx