A Free Bankruptcy, IVA And Simple IVA, Insolvency Advice Forum

[ktandpete]

Hi all,

I had a quick scoot around the forum, but couldn't find anything that answered my question in full, so thought I'd post myself.

In 2005 my husband and I owned a terraced house with no equity in it. My husband lost his job and was forced to go bankrupt. We were advised to sell our house before he went bankrupt and my parents bought a house with a buy-to-let mortgage for us to live in. As it is buy-to-let, it is interest only and we pay all of the interest. They also took a mortgage out on their own house (again interest only) which they used as a deposit on my house.

My parents are very supportive and have only ever wanted to help us, and so agreed that any equity in the property would always be ours. We agreed to pay for all maintenence and insurances on the property and always have done, so they have never been out of pocket.

We are now feeling in a much better position financially (albeit with a bankruptcy against my husbands name) and would like to own the house for ourselves.

I have detailed the numbers below FYI, can my parents sell me the house for the amount owed against my house only (and not theirs) so that I can get a 65% LTV mortgage (I don't have to find a cash deposit then)? We would then get a re-payment mortgage (so that we start to pay off the capital) and make additional payments on the loan against their house (until we eventually pay it off). Do you think we would get a mortgage at this level because of the low LTV?

My house - buy to let mortgage (in parents name) £105,413.00
Their house - mortgage (in parents name) of £83,974.15 used as deposit on my house
Current value of my house - £170,000 (from Zoopla)

I hope this is enough info to enable someone to offer advice, please let me know if you need anything else

Thanks for reading

[Hg]

I'm sure there could be mortgages out there, but I think you might need to try a specialist broker to find them. You'll also need to carefully consider the cost, as it may be very expensive.