My husband and I are considering a 3 person mortgage with my father in law and wanted some opinions / advice on a couple of points if anyone can help?
My husband and I are both in our late 20s and have always rented. Father in law had a mortgage and sold his house at a pretty significant profit before the bottom fell out of the market and has been renting ever since. I have a pretty poor credit history (naivety more than anything else, but basically numerous applications that had been turned down which I'm sure have disastrously affected my credit rating - I rather stupidly hadn't realised every time I asked for a loan that it would flag my credit score) my husbands credit rating is better, but not perfect, and father in law's is excellent.
My husband and I are pretty certain we won't get a mortgage just ourselves and father in law (mid 60s) won't get one himself either and is as sick as we are of renting.
As it stands we are looking at father in law, who is very flexible, either being a guarantor or supplying the majority of the deposit or both. Can he even be a guarantor without a property himself though? He doesn't necessarily want to be on the mortgage himself, as not only would it limit our repayment period, but he basically wants the house to be ours as long as he can live there. We have lived with him previously and he lived with us as well for a period so I'm well aware of the dangers of moving in with the in laws and the many, many pitfalls that could happen. Before we go down the route of brokers, estate agents and drawing up legal contracts etc is the anyone here that could advise:
Will we even be considered for a mortgage given my bad credit history?
Is it possible for father in law to be a guarantor with out a property of his own?
Would the mortgage, given my bad credit history, have to be in all 3 names therefore making it a much shorter repayment period given father in laws age?
My husband and I are both in our late 20s and have always rented. Father in law had a mortgage and sold his house at a pretty significant profit before the bottom fell out of the market and has been renting ever since. I have a pretty poor credit history (naivety more than anything else, but basically numerous applications that had been turned down which I'm sure have disastrously affected my credit rating - I rather stupidly hadn't realised every time I asked for a loan that it would flag my credit score) my husbands credit rating is better, but not perfect, and father in law's is excellent.
My husband and I are pretty certain we won't get a mortgage just ourselves and father in law (mid 60s) won't get one himself either and is as sick as we are of renting.
As it stands we are looking at father in law, who is very flexible, either being a guarantor or supplying the majority of the deposit or both. Can he even be a guarantor without a property himself though? He doesn't necessarily want to be on the mortgage himself, as not only would it limit our repayment period, but he basically wants the house to be ours as long as he can live there. We have lived with him previously and he lived with us as well for a period so I'm well aware of the dangers of moving in with the in laws and the many, many pitfalls that could happen. Before we go down the route of brokers, estate agents and drawing up legal contracts etc is the anyone here that could advise:
Will we even be considered for a mortgage given my bad credit history?
Is it possible for father in law to be a guarantor with out a property of his own?
Would the mortgage, given my bad credit history, have to be in all 3 names therefore making it a much shorter repayment period given father in laws age?