Hi, I have a situation where my husband has got in a bit of bother and has gone into arrears with a bank loan. He basically topped it up a lot of times over recent years. Both it looks like it is going to to the ombudsman as it has since been advised to him that the bank were negligent. He is still paying a bit towards it under temporary terms until it's all sorted out but right now it looks like his credit rating is bad as it is showing his arrears.
So I have a mortgage with him on a family home a few years now. We also inherited a house a few years back which we almost have sold. Therefore I will come out with a good bit of money cash in hand. Our plan the whole way along was to also sell our current family home and buy somewhere bigger while downsizing our mortgage at the same time as we would have the guts of 70% of the purchase price of a new home through the sale of my inherited property.
My trouble is I need the extra 30% through a small mortgage. But because my hb has a bad credit rating I reckon it will be refused even though it will be for such a small amount. And until now I was unaware a married person couldn't get a loan by themselves.
Looking for any advice anyone might have. I'm eager to move on with our plans as it is going toake our whole financial situation better in the long run. I.e current mortgage 210k - new mortgage will only be 50k at most.
yeah not sure they would look at me for the extra mortgage on top of the one I already have. Worth looking at though I suppose.A married person can get a mortgage by themselves but just not for the family home, they could get one for example on a buy to let. If you had sufficient income on your own you could contemplate buying the new one as a buy to let and then selling your own and moving in, assuming you could get one at the same rate as a home loan.
We have been advised that as the inherited house is in my name they cannot touch my savings/assets as the loan is solely on his own name. I do hope that is true as I was very apprehensive that they could come after my money in an attempt to clear his loan?You need to get your husbands liability sorted out on the loan he's in arrears on. Not necessarily settled but get proper advice on it and what the likely outcome will be.
If that lender moves against him (assuming its a normal personal loan), they could/should come after his share in the the other assets you have i.e. the equity in your existing home and the equity in the home you inherited.
But as Monbretia stated, there's nothing stopping you getting a loan off your own bat. The problem is BTL rates are well above standard mortgages.
We have been advised that as the inherited house is in my name they cannot touch my savings/assets as the loan is solely on his own name. I do hope that is true as I was very apprehensive that they could come after my money in an attempt to clear his loan?
We have been advised that as the inherited house is in my name they cannot touch my savings/assets as the loan is solely on his own name. I do hope that is true as I was very apprehensive that they could come after my money in an attempt to clear his loan?
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I didn't know about my husbands increasing loan at all. It was all done behind my back and its all a bit of a mess. A relative of my husband who is a former bank employee told him to stop paying the loan as she thought he had a good case against the bank. This was not my decision and I haven't been happy about it.
Do you think if I went to the bank that we have our current mortgage with and tell them about the sale of our other house and came to some agreement with my husbands loan that they would give us the small mortgage as in essence we would be significantly reducing our current mortgage. Just to note our current mortgage is fully paid up, never any issues and my own credit rating is spotless.
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As long as they are not the same bank that your husband owse the money to. Be careful here, all the bank that is owed the money want is there money back, they don't care about you or your circumstances. There's a reason Mr Banker rhymes with another wordDo you think if I went to the bank that we have our current mortgage with and tell them about the sale of our other house and came to some agreement with my husbands loan that they would give us the small mortgage as in essence we would be significantly reducing our current mortgage.
Maybe pedantic in the greater scheme of things but are you sure that this is correct?As Bronte said, his equity in joint mortgage is at risk of being taken when house is sold.
eg sold for k200 less mortgage k100 leaves k100 , in law this k100 is k50 husband & k50 wife . ie his k50 is at risk.
I love this Elcato . All the same bank with loan and mortgage. Yeah I mean look it's another reason why I would prefer the house/mortgage of new house in my own name. While I love my hubby dearly and he is a great dad he cannot be trusted with money. So it's just frustrating on my part that we could be stuck in the house/mortgage situation for a while if I don't clear 25k of a loan for him. He doesn't want me to do that. But I don't want to be stuck in this house/large mortgage for years to come either. Ah think I just need to get some legal advice maybe.thanks all.As long as they are not the same bank that your husband owse the money to. Be careful here, all the bank that is owed the money want is there money back, they don't care about you or your circumstances. There's a reason Mr Banker rhymes with another word. I second Brontes post about Liam.
vsI know some people may suggest clearing my husbands loan for him but that is definitely something I want to avoid at all costs for various personal reasons.
Our current mortgage balance is 210k. The house is valued around 200k mark so we might just break even.vs
if I don't clear 25k of a loan for him. He doesn't want me to do that
So which is it then
Why don't you lay out the numbers here: my guess is, based on what you have written the LTV is 100% at 210k so no equity in the family home.
then you write
My trouble is I need the extra 30% through a small mortgage. ........ I.e current mortgage 210k - new mortgage will only be 50k at most.
So this suggests the new house is only worth 166k [ 50/30% ] for what you say is a bigger house, and the inheritance then looks like being 116k or so.
so if u repay the 25k the the mortgage goes to 75 on 166 which is LTV of 45% which is very doable.
Before you get legal advice,which won't be much different than what has been written here, but will cost a bundle more, you need to clarify the numbers and your thinking and forget about the om-bulls-man, you can still pursue the case, even if you repay the loan.
What about stuff like the Family Home Protection Act?I have by the way a radical solution for you if it's totally impossible to get a mortgage. You pretend you are separated and you do everything to demonstrate that to a bank, then you go to the bank as a single separated woman. If your husbands issue is serious, like gambling, this is what I would do. That way you protect the assets for the whole family.
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