Application for Mortgage in my own name

I have a property purchased for 296,000 currently valued at 130,000, amount owing is 230,000. I no longer live in the city where this property was purchased due to family and work reasons. Property is rented. Rent received 800 per month does not cover mortage of 13000. I pay the difference in addition to paying rent 1,100 per month.

I have recently been given the opportunity to purchase an elderly relatives house for 160,000. My plan was to request a negative equity mortgage from bank. My gross income is 60,000 and I have 40,000 savings. I hoped to get mortgage of 260,000 (including negative equity) and use the savings to modernise the house.

The problem: I got married recently and my husband has a bad credit rating. I did not marry him for his money!. He has a mortgage with his ex partner who lives in the property. This mortgage is in arrears and despite his best efforts to negotiate with ex partner he has been unable to come to any constuctive way of addressing arrears/ sell/ or get his name off the mortgage.

Based on my own credit rating I was hopeful that I could get a negative equity mortgage in my name of some amount, maybe not all that I would like but most of it. I was unaware of the issue with being married ie credit rating of your husband will be considered in any mortgage application.

Is there any way of appealing that I be considered in my own right given that he is stuck in a mortgage (22 years left) that he can't get out of, as other party to his mortgage is refusing to sell, and taking into consideration my excellent credit history.

This may be our best chance of getting a property where we both want to live. All suggestions welcome.

Thanks

Seems the only way you could really do it is to possibly offer your relative the 40k and ask would they take monthly payments from there on. How badly do they need to get the full 160k up front ?

elcato said:

Seems the only way you could really do it is to possibly offer your relative the 40k and ask would they take monthly payments from there on. How badly do they need to get the full 160k up front ?

Click to expand...

Thanks for reply. Unfortunately my relative isnt too well off so will want the full amount or close to it. So we might be goosed.

It looks like a big ask. I imagine that your husband has to be on the mortgage, so that would damage your chances.

The only thing is to apply to your lender and see what they say.

Forget about the modernisation for the moment. How much is the house you are buying worth? If it's only worth €160k, then there is no urgency in buying it.

Is the current mortgage a tracker? They might be happy to get rid of it. Which lender are you with.




From the lender's point of view...

• The mortgage is less
  
• The security is higher
  
• Consequently, the LTV is much lower
  
• Maybe they have got rid of a tracker

Another possibility,would be to buy the house from your relative for €160k contract price, with €100k paid now and €60k to be paid in the future.

What is your relationship to the relative? If they are selling you the house at a discount, you could be subject to CAT.

Brendan

My mortgage is with EBS. It's a variable.
House got valued for 340,000; value is for location not condition of house! It is likely to increase in value; this might be our best bet of having a roof in a good location. We are currently renting at a fair price but not sure if that will stay so good.
Im meeting bank tomorrow so will see what they say.
I will look into CAT...
Thanks for feedback