refused mortgage, what are my next options?

[JodiP]

My parents have just put their family home up for sale, they have in the meantime found their 'dream' house and are trying to raise the finance to secure the purchase of that house before their own house sells. Their current home is worth more than the property they wish to buy.
They applied for a mortgage jointly with my brother and were refused on the basis of their age (mid fifties), their income and my brother's earning potential (he has good earning potential but is less than 6 months in his current job). The broker was only dealing with one lender and says that the refusal was 'borderline'. Should we continue to try and raise the money through other mortgage lenders or concentrate trying to sell their house and hope that their dream home is not snapped up in the interim? Is it possible that other lenders would consider this application more favourably?

 

[Marianne]

Not enough information in your post to answer. Relevant information is brother's income, occupation, parents' income, occupations, existing loan repayments for all parties etc.

Bear in mind that some lenders will now assess a loan to age 70, so that might help.

If your "broker" only deals with one lender he or she is not a broker by definition.

 

[CathyK]

Try a broker that deals with all the lenders, that way you will get the best advice and get the mortgage seem by more lenders, dont give up, there is a solution out there for you

Catherine@keatingfinancial.com

 

[redstar]

A couple of things here;

parents....are trying to raise the finance to secure the purchase of that house before their own house sells.

Any urgent reason why this is the case ? Wouldn't they just need to secure a deposit for their new house, and get the contracts signed, which are binding. The new house is secured at that stage (barring disaster) ? They could then close when their own house sells. Either borrow the deposit from bank/credit union or yourself/brother ?

Their current home is worth more than the property they wish to buy

Great - Then they do not need a mortgage ?

Your parents position is better than it might seem. Maybe they are being a bit too anxious about losing their dream home ?