FTB's or Not?

happyandlost

Hi, I need some advice regarding a situation me and my boyfriend, J, have got ourselves into.. i'll try keep it brief although it's anything but!

J lives with his mum at the mo and I live with my mum. J's mum put her house up for sale cos she wanted to split from her partner and all was going well until 1 week before the sale was due to complete the guy buying it pulled out, now because J's mum is registered disabled and claims disability benefits she could not take out a mortgage to buy the bungalow which she was moving to so to stop her from losing that completely me & J agreed to get a mortgage in our own names for her so we now own the bungalow.

The other house is still up for sale and until that sells me & J are stuck with the mortgage on the bungalow.

My queries are, when this is all sorted and we can eventually think about getting our own house, because we have technically already had a mortgage would we be able to get the FTB's deals as im concerned that no 100% mortgages are being provided anymore and also the only mortgage currently availble where you dont have to have a big deposit is the Halifax FTB mortgage where you can only have a 3% deposit - but will we qualify for this?

I cant beleive the mess we have got ourselves in over this and am very worried about trying to get on the housing ladder now. Any advice would be much appreciated.

Thank you in advance

neas

Is J's mum funding the mortgage upkeep on the new place?

Otherwise very very bad idea.... especially in this climate... house prices are dropping:

1. Your mothers house wont be worth as much as she thought, so less equity to pay YOU for the bungalow
2. The bungalow you just bought will be now dropping in value and also costing you interest on the mortgage.

So the worst case is...

It taskes years to sell the property and you end up fuelling a house you didn't want... never able to move onto your 'own' property.
In this same time period J's mother house drops 30%... so she doesn't have enough to fully cover the original purchase price... not covering your mortgage....leaving you with a sizeable chunk of mortgage to have payed off.

Noble act... but very very risky in todays climate.. I really do hope you get a quick sell for the mothers property... because what you have done is a really nice thing.

All the best for you.