Can my mother transfer her house to me if she has a mortgage?

[akania]

Hi all

 

My mum has got herself in a bit of a financial state as some of you know from my other posts on here. She is 62 this year. About 5 years ago she took out an interest only mortgage on her property for £76,000. This will now mature next year and she has no other way of paying it off unless she sells her home. The house is worth £220,000.00 so she still has alot of equity in it. I moved in a few years back and have been paying the mortgage off for her every month as shes only a dinner lady and cant afford it. She has left her house to me in her will. I have launched a complaint via the fso into her lender as I don't belive she should have been granted it in the first place so you never know they may find in favor but if they don't we need a plan b. I have spoken to a building society about taking over the mortgage and they said that my mum would have to sign the house over to me in order for that to happen and I would then get a mortgage on the house and pay off the old one. Whilst not an ideal situation there isn't any alternative as I am not prepared for her to lose her home if I can help it. I earn around £36,000.00 per annum and have no debt but a less than perfect credit file even though it's improving. Before I go to the building society I just wondered if I could get some advice from you guys?

Thanks

 

[bewillded]

Nothing stopping your Mum adding you as a joint owner of the property and you taking a mortgage out together/in your name. At the end of the day the Bank;'s just want their money back and your Mum could extend her mortgage end date thus allowing you more time to help with the repayments. If her financial situation is not brilliant then adding you to the mortgage helps the banks as they are spreading their liability and then have more people to chase! With your earning you should be bale to cover the mortage criteria of usually 3 X salary. see what her mortgage company can do to add you to mortgage as well. This would work if you then became tennants in common.

[akania]

ok sounds good. She has left the house to me in her will so was advised that if she signed it over then i could get a 15 year mortgage repayment and she would have some money for herself in her retirement. Everywhere else iver looked at has said that signing the house over is a complicated situation , the mortgage compaies dont like it etc, plus im a bit worried as the financial ombudsman has launched a complaint against the broker who was an independant and are asking skiptons for thier final response so i doubt skiptons will want to help us after this.

[akania]

By the way i dont have brilliant credit do you think this will be an issue as the equity in the property is over 100k?

[akania]

Also just to let you know i received an email from the fso who have asked skiptons for their final reply and have set up a complaint against the broker who has 3 months to reply. Is this a good thing?

[brokebutnotbeatn]

unfortunately even one default on your credit file will probably stop you getting a mortgage. However, see what the mortgage company say. It is actually quite a simple process as its a transfer of ownership and they may not even do a credit check on you given the equity in the property and the amount you earn.

[assisted blonde]

Worth asking them they can only say yes or no to a mortgage

[akania]

Thanks guys

 

well the Cheltenham and Gloucster said no chance ! I called a broker and he said if i wait till i have been discharged 4 years i can virtually half the interest rate to 4%, I guess ill have to keep looking, The FSO has launched a complaint against both the building society and the broker due to the circumstances so fingers crossed there.,

[akania]

Do you think the mortgage company will be funny about it though as a complaint has been launched into them?

[bewillded]

That's why i suggested keeping your Mum also on the mortage as the lender is then only diluting its lending exposure and should only help having a higher income earner coming onto the mortgage. Don't forget they have the risk anyway!

[akania]

Ok thanks for that

 

Ive been reading through the forums this morning and now in the process of having a mini heartattack.

 

As i said i have launched a complaint with the FSO which he has set up against the mortgage company and the broker. After reading through some posts on mis sold mortgages. It seems that the likely outcome is 'recinssion' (sp) and having to pay the mortgage back immediatley. If this was the outcome this would put us in a worse situation than we are in now!!! My origional complaint was that the mortgage was obtained under duress but i was also encouraged to couple this with the misselling as well.

 

God i dont know what im doing the FSO is taking this seriously and now i think i may have cocked things up royally especically if im going to struggle to get a mortgage. Do you think i should cancel the complaint?

[bewillded]

I would not cancel complaint but what you could do is have a meeting with the mortgage co to explain that although you think the mortgage should never have been given the fact is, is that it has which means that you need them to remortgage in your joint names on favourable terms.

A complaint only gives you the potential for negative marketing and publishing of the facts surrounding the mortgage being sold in the first place. The mortgage is not huge compared to the equity that is in the home and sense has to prevail. You have the ablity to make the repayments with the higher income and presumably you can show that you have been helping your Mum anyway with the repayments which should all help. Hope it goes well

[akania]

Thanks that makes me feel a bit better. i dont want to be in a situation that by trying to do the right thing ends up causing huge problems in the long run.

[akania]

Sorry just one other thought. Is this something i should be talking to them about now whilst the complaint is in full swing or leave until the complaint has reached its conclusion?

[bewillded]

I would strike now, if you wait the FSO may make a decison for you! If you set up a meeting now you can explain that a complaint is ongoing (don't forget they will know if they have given the mortgage when they should not have done!) and that you want a sucessfull conclusion which may mean withdrawing the complaint if you can be added to the mortgage and the mortgage is put through on competitive terms!

[akania]

Ooooh ok and if they refuse i guess ill just have to keep my fingers crossed and either wait to see if we get the mortgage written off/compensation or quickly get a mortgage i guess... nightmare

 

Does the FSO always set up complaints regardless or only if they think they have merit?