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Morgage lifeline

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Hi all hoping you could help with the following:

I'm 36 years old working full time taking home 2.5k after taxes a month with no savings and around 2.5I credit card debts (I was always pay on time with amount due) . I also partly settled a ccj last year. The ccj was 6 years old in November so not on my record (I've been told). 

From that you can see I'm not great with my finances ! Fortunately I've been offered a lifeline  by a family member to sell me a house worth around 700k for 200k currently vacant due to covid. It was getting 2.2k previously.

My question is can I get a 100% morgage for the 200k with my current situation? Maybe even 250/300k so I can renovate/extend possibly? It will be a buy to let.

Also maybe I should mention I'm married with a 1 year old leaving with motherlaw. My wife's finances are tip top. Shes actually already got a morgage offer for us to by a family home in solely her name. Lastly will having a a criminal record effect me getting the morgage? I done a 3 month prision prision sentence back in 2014 for perverting the course of justice (driving while on a bad and using someone else's name... stupid and embarrassing I know)

You can see why I've come here first as the thought of explaining all that to a morgage advisor is daunting.

Thanks for taking time to read this and look forward to your replies.

Kind regards 



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It wouldn't be a 100% mortgage. You're looking to do something called a concessionary purchase, more details here: https://ukmortgageadvisors.co.uk/blog/concessionary-purchase-mortgage/ 

This is simply where you buy a property for less than the market value and use the difference between the purchase price and the value of the property as your deposit.

This is quite a discount though, so the Lender will ask some questions around this.

Criminal record should be fine with most lenders, as the crime should be spent right, and it wasn't fraud/money related.

CCJ will be off your file too.

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My main concern wouldnt be with the mortgage company, as far as they are concerned a concessionary purchase is a gift, but a gift of equity rather than cash.

What you should be concerned about is HMRC. They are going to want to know why they are not getting stamp duty or capital gains (if applicable) at the market value of £700k. I'd recommend the family member speaking to a solicitor and or an accountant first and foremost about this because it could be a bit of a minefield.

Generally most concessionary purchases i do are with around a 10% - 15% discount, Thats usually within the range of values for property of its kind in a particualar area. Selling at less than a third of the value is definitely going to raise some eyebrows, especially if you are doing it just after the close of a stamp duty holiday!

043_logo_final_03.png.0cdf828351f81e6097208048ac2d018d.pngStuart Phillips

Independent, Whole of Market Mortgage Broker

AALTO Mortgages Ltd

Web  www.aaltomortgages.com

Email  sales@aaltomortgages.com

Call  020 7183 1101

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