Andrew Graveson wrote:Thank you for your welcome and prompt reply. In answer to some of your queries: the deposit would be £60,000 from my mother. Early inheritance - but she would require her name on the deeds. Any implications there? Also I have a good IP payment record. I realise financially I can't affort to pay more than I am already and understand that the mortgage can't/shouldn't be more than my rent £725.00 p.m. We envisage we would have to get a mortgage of around £140,000 and the repayments would be around £1100-1200 p.m. The joint mortgage would be with my daughter and she would top up over and above the £725 I pay in rent. So she would be contributing say £300-400 per month. The question will the IP say as it is joint mortgage, it is 50/50 and she is liable to pay say £500 p.m. each in which case reducing my monthly expenses by £250.00 and then put up my iva monthly payments by 250 extra. Whereas in reality it won't be 50/50 I will still carry on paying £725 on a mortgage instead of rent and she will top the rest up. Or will they be satisfied if I can prove that I will pay £725.00 and she pays a lesser figure? Confused? Thank you for any help you may be abel to give.
Hello and welcome to the forum.
As you are in an IVA it is likely that there will be some premium in the interest rate over and above what are described as "high street" mortgages.
A good mortgage broker will work with you to minimise the costs, and there are lenders who are interested in this type of business.
You will need to have a good sized deposit, have a good IVA payment record, and your IP will probably require that your mortgage does not cost more than your rent today.
Whether you are succesful in gettng the mortgage and the rate you will pay depend entirely on your personal circumstances (and those of any other parties to the mortgage).
On the subject of your loan idea I'll leave it to other experts and contributors to give their views.
Andrew Graveson
Mortgage Broker & Bright Oak Debt Management
andrew@brightoak.co.uk
www.brightoak.co.uk
Andrew Graveson wrote:
Hi,
I'd suggest at this point that you contact your IP to discuss your plan. They will be able to help you do this in a way that they are comfortable with.
What is the reason for your mother wishing to be on the deeds?
Andrew Graveson
Mortgage Broker & Bright Oak Debt Management
andrew@brightoak.co.uk
Thanks again for prompt reply. My mother lives abroad and I think she feels she will be penalised financiallyif she just gives me the money as a gift, (inheritance tax etc.) and if she is on the deeds it won't seem like a gift but an investment. I did say I would look in to it for her.) The only reason I am a little apprehensive about contacting my ip at this juncture as I ddin't want them asking too many questions about the money from my mother etc until I felt more confident with my position and whether this was a viable idea. I will contact them now though. One last question do you know of reputable mortgage companies I could approach for advice/quotes? Thank you.
www.brightoak.co.uk
Andrew Graveson wrote:Thanks for your help and time. I will keep you posted.
Hello,
I think the advice of an accountant might be useful for your mother and yourself in terms of tax planning.
You perhaps should also raise the idea "speculatively" with your IP to make sure that your mother's contribution could not be perceived to be a gift to you.
Mortgages for those in IVA's can be a little more "involved" than regular high street mortgages. For that reason many people choose to use mortgage brokers to help guide them to the best deal available to fit their unique circumstances.
There are three mortgage brokers used to dealing with cases connected to IVA's who regularly post on this site. In addition to myself there are Tony Parsons (Welshboy) and Mike Burridge (Mikebdomain). Any of us would be pleased to talk through options with you.
Andrew Graveson
Mortgage Broker & Bright Oak Debt Management
andrew@brightoak.co.uk
www.brightoak.co.uk
andydavie wrote:About me:
Hi
Just make it clear that your mothers gift will only be made if it is used as a down payment on a property and that it will not be made if it is expected to be paid into your IVA.
Regards
Andy Davie
IVA.co.uk Spokesperson and Website Manager
lpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp
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