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Our property investment expert is Jeni Browne, Sales Director at
Mortgages for Business
www.mortgagesforbusiness.co.uk
Tel: 0345 345 6788
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Question
Concerns over joint mortgage with daughter and son-in-law
My husband and I are looking at helping our daughter onto the property ladder using a Joint Borrower, Sole Proprietor mortgage. Our daughter would like to buy her first home with her partner, and they have been together for two years. We are a little concerned about what might happen to our money and credit rating if, for example, her partner defaulted or if they split up. We obviously want to help our daughter and her partner, but equally we also want to make sure we go into this with our eyes open and are prepared for any potential problems.
Answer
So yes, it’s a big commitment, especially when there is a partner involved, as you are reliant on not only your child, but the other person to meet the mortgage payments on time. What I would say is that the account conduct of their other financial commitments will not impact your credit score, it’s just the mortgage payments being met on time. Perhaps, to safeguard yourselves, you could set up a bank account which you can all access, and from which the mortgage payments are made, so that you can keep a watchful eye and make sure nothing untoward happens? It would also be worth taking legal advice.
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Question
Conveyancing glitch hampering mortgage
I am going through the process of buying a house and it has just come to light there is a right of way which, apparently, goes through the back garden, right past the back door! It’s highly unlikely to cause us a single problem, because the public cannot access the ‘right of way’ to use it anyway. But even though it’s academic, our lender has now got jittery. Our solicitor thinks we can get an insurance policy which will provide reassurance to the lender but this will obviously cost us yet more money. Is this normal? Should we find a different mortgage lender?
Answer
Any peculiarities around the property will always pique the lender’s interest. Rights of way across land are fairly common and so I don’t imagine that this will prove to be an insurmountable issue, especially as your solicitor is happy that an indemnity policy can be secured to protect both you and the lender. I would hold off looking for a new mortgage for now and continue with the existing application… Good luck!
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Question
Getting a shared ownership mortgage
I have been looking very seriously at getting my first home through a shared ownership scheme. I meet all the eligibility requirements, I have a deposit of £24,000 and live in South East London. I have found out I need to get my mortgage through a lender which specialises in shared ownership mortgages. What does this mean? Which banks should I go to and what will they need to know? Alternatively, are there any other companies who can help?
Answer
Not all lenders offer shared ownership mortgages. I am quite sure that Google would be a good friend to you here, and a quick search will name some institutions which offer this these products. However, it would be worth calling an independent mortgage broker, who will have access to the whole market and save you the leg work, but also hold your hand through the whole home-buying process. As a first-time buyer, this extra guidance can be a real godsend… Even better, try one of our brokers!
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Question
Using my own money to remortgage
I took out a mortgage over two years ago, it was an introductory deal when I bought my first home. I am therefore about to remortgage and wanted to put forward my own savings (I have about £7,500) to pay down some of the loan and hopefully get a better rate. Can I do this? If so, how would I go about it?
Answer
Yes, absolutely. If you remortgage to a new lender you would simply apply for a mortgage amount of £7,500 less than the current balance. You would then pass your funds across to the solicitor who is carrying out the remortgage legal work and they will allocate this for you.
If you find that your current lender is able to offer you a deal attractive enough to remain with them, I would suggest you let them know that you wish to make an overpayment and they will be able to advise you how and when to do this.
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