Need mortgage help

[Justtwosecondspoppet]

My mum has just died and left me the house (I'm an only child) and there is £20k left on the mortgage. There doesn't seem to be any life insurance and I am a student, but want to rent it until I finish uni and then move in (my uni is the other side of the country to my mum's house). I have a default from 2004 for £102 from when I split with dd's father and forgot to forward the mail, but satisfied it as soon as I found out about it. What are my chances for taking on or getting a mortgage? The house is worth £130,000 and would rent very easily for £400-£450 pcm.

I'd say your chances were good. You have a lot of equity in the house so the bank could be sure of getting their money back if you defaulted, which you wouldn't of course. They'll want to know you can cover the mortgage payments yourself if there was no rent coming in so you'll need another source of income.

Sorry to hear about your mother. The problem is twofold: first your credit record may not be that great so that could make getting a mortgage difficutl; second, £20,000 is usually too trivial an amount (I know, I know) for mortgage brokers to be bothered - the interest on it is just not worth their while. The best thing to do is to have your credit record checked and speak to an IFA about your chances of getting a buy-to-let mortgage. Good luck.

What would another source of income be? I have loans and bursaries, of which some are being saved as a bank buffer, but the payments are a quarter of what I am paying in rent, so I could cover them quite easily if I had to. The university has a very strong policy on not allowing us to work term time, but we are allowed to in the holidays.

Thanks Lyra, I have felt wretched about this for days as the house was mum's pride and joy.

What would another source of income be? I have loans and bursaries, of which some are being saved as a bank buffer, but the payments are a quarter of what I am paying in rent, so I could cover them quite easily if I had to. The university has a very strong policy on not allowing us to work term time, but we are allowed to in the holidays.

Thanks Lyra, I have felt wretched about this for days as the house was mum's pride and joy.

What would another source of income be? I have loans and bursaries, of which some are being saved as a bank buffer, but the payments are a quarter of what I am paying in rent, so I could cover them quite easily if I had to. The university has a very strong policy on not allowing us to work term time, but we are allowed to in the holidays.

Thanks Lyra, I have felt wretched about this for days as the house was mum's pride and joy.

If you had some savings in the bank which you could show them to prove you had money to cover void months when you had no tenant, that might be enough. Speak to a financial advisor but avoid the ones who charge you for their time.

Stupid triple posting thing, argh!! Do you think they would let me take over mum's mortgage? I would be devastated if I had to sell it because they thought the amount "too trivial", the horrid mortgage poeple!

I have £5,000 of savings, so it doesn't really help with trying to get the mortgage down but does help to cover rental payments, that could be good, hooray!

No idea I'm afraid. You can always ask.
If the worst came to the worst, the amount is small enough to just get a big loan, secured on the house, over a long enough period to keep the costs down.
I really don't think you'll have a problem but I'm no expert.

That definitely helps!

Thank you x

J2SP - no mortgage company would consider the amount trivial to lend as I am a mortgage advisor for a Gvmt owned bank () and I have done mortgages for people for under £15k before.
You may be best off talking to your bank if you have a good relationship with them rather than an IFA as they make their money based on a % of your loan amount. Also talk to the company that your mum had the mortgage with as they may be happy for you to take it on.

just wanted to say sorry for your loss and hope you get it sorted. I bank with Nationwide Building Society and they have been fantastic will look at affordability not just income multiples etc and I think we only borrowed about £30k about 10 years ago a relatively small amount.

Thank you all so much-this is the last thing I wanted to be worrying about but it feels like the house will disappear from under me before the funeral has even taken place! Hedgehog-you're not Northern Rock are you?!?! She's banked with the Bradford and Bingley from the start so am hoping they will want to keep the mortgage going-it's better for them in the long run than me selling the house surely? And we are both ex-employees! x

It's a table-topping uni so they work you like mad during the term time, so would rather you studied instead of working too. They are great with finances because of it though-they have scholarships and funds for everything, but sadly I doubt they have a wipe out your mother's mortgage in case of death fund, but not having a job looks bad for the mortgage co! Have asked the mortgage co about life policies and head office are getting back to me, but it looks unlikely as there are only mortgage payments on her statements, no tiny little other payments too. Poop! However, I always believe these things happen for a reason, and if it means I have to sell the house and buy a little one bed flat with the remaining £ so be it, these things are sent to test us and always work out in the end, with or without worrying!! .

Justtwo my dp may be able to help you can contact him for advice here

I would say contact a bank or building society direct, rather than a broker. You should be able to get a yes or no in proncipal over the phone, even if they have to come back to you after referring it. Just phone the main head office call centres.

Ooooooh thank you you two xxx