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Complex mortgage question.

Discussion in 'General Discussion' started by DanTheMan, 1 Oct 2009.

  1. DanTheMan


    Joined: 11 Oct 2005

    Posts: 4,246

    Location: Manchester, UK

    The scenario:

    At the moment I live with my parents in rented accomodation, my nanna lives on her own in a house that's fully paid for. We all want to move into a house together with me being the mortgage holder as my nanna is retired and my parents have a terrible credit rating.

    The house we want to move into costs £250,000, my nannas house is worth ~£120,000 and she has £70,000 to put down as a deposit so this leaves us needing a mortgage for £60,000 which sounds easy...

    The problem is, if we put down a £70,000 deposit but my nannas house hasn't sold, that leaves us needing a £180,000 mortgage, there's no chance I'll get accepted for that on ~15k a year.

    The thing is, even though I'm only on ~15k a year, the total household income would be around £4000 a month and we could easily afford the mortgage, it's just the fact that I'm the only one with a cat in hell's chance of getting a mortgage secured in the first place.

    Any suggestions on the best way to go about moving?
  2. Mat


    Joined: 18 Oct 2002

    Posts: 13,918

    Have you tried an independent mortgage advisor?
  3. Vixen


    Joined: 23 Feb 2004

    Posts: 6,941

    Location: Edinburgh

    Are you sure that you'll even get a £60k mortgage if you're only earning £15k? You may find that you'll need to include at least one of your parents to make sure you get the full amount. I'd definitely speak to a mortgage advisor, they will know all of the products available and how much you're likely to get.

    It used to be possible to get a bridging loan when waiting for a house to sell, it's a much higher interest short-term loan of the value of the second home. I don't know if you can still get them with the current situation but I think it's the sort of thing you need to be looking at.