What kind mortgage do I need?

[Glitterb]

In April my Mum sadly passed away suddenly with no will in place. We have had probate grated and both me and my brother are administrators of the probate/estate. I currently live in my Mums house (i have done for all my life, I’m 31) her house has a small mortgage left on to pay.

We have some debts that need to be paid, with the mortgage & debts it comes to £25k. I am currently paying the mortgage payments so we are not in any arrears. The house is worth £170k +.

After numerous conversations we have decided the best course of action would be for me to get a mortgage to buy my brother out and also pay the debts off.
What mortgage do I need to be looking for? Is this something that is even possible? I will be looking for borrow around £70k as a mortgage with the rest of the value as a deposit.

This whole situation has been incredibly stressful and is causing me sleepless nights so apologies if it sounds stupid!

Condolences for the loss of your mum. That must have been a terrible shock.

I would find an independent financial advisor who will take you through the whole process. There are lots that work for no fee and get paid by which ever lender you go with.

That would just be a normal residential mortgage. It shouldn’t be a problem as long as you earn enough and have a good credit history.

Sorry for the loss of your DM.

That should be fairly easy for a mortgage broker to sort out for you, providing that you earn enough, which you should do providing that you work full time and aren't on NMW or have loans/credit cards/car finance to pay. You should qualify for a decent rate, as the LTV will be low.

If you're not in a desperate rush and you or your brother have some spare money, you could take advantage of a Lifetime ISA and get some free money from the government to top up your deposit.

Sounds like you and your brother currently jointly own the house between you, so it's not an unusual situation as it's similar to if a couple were separating. Don't forget there will be legal fees, but these shouldn't be that much (about £1k?).

You get your mortgage for £70k, pay off the existing mortgage and other debts and the rest goes to your brother as his share of the inheritance and the house is then yours in the normal way and pay the mortgage.

But are you sure about the amount of mortgage needed, or are you not splitting the value of the house 50/50?

Because as you've described it, it sounds like you're getting £100k (the value of the house minus the mortgage you're taking out) and your brother is getting about £45k (the money that will be left after the mortgage and other debts are paid off).

@BarbaraofSeville Thank you, this is how I hoped it would work! I am just so stressed and worried about everything at the moment, as well as grieving for my Mum.

We are not splitting the value straight down the middle, mainly because my brothers main priority is ensuring I have a house to live in and he doesn't want me having to rent as it is so expensive around here. He already owns a house and we are also each others only surviving blood relatives now. It is lucky really that we both get along so well. If anything happens to me then we will inherit the whole thing and I will make a will to ensure this.

Oh that's great and nice of your DB too. I'm probably going to do similar for me and my sister if we inherit DMs house.

I've been a lot luckier financially in life than she has - I've got a reasonably well paid job, good pension, got on the property ladder when prices were very low, and have no DC whereas she still rents in her 40s and has a DC with SENs who might need care into adulthood so I'm probably going to let her have DMs house rather than insist that it is sold to split the value between us (providing that it doesn't go on DM care obviously) as her need is much greater than mine and I'm at the stage of life where any inheritance I receive will probably just sit in a savings account.

@BarbaraofSeville that is a really nice thing to consider, it isn't very often people are so kind when money is around!

My brother and myself have had a tough couple of years after losing both parents within 18 months of each other, I think both of us want life to go back to some kind of normality