Complicated mortgage situation: would a broker be able to help?

Options
2»

Comments

  • getmore4less
    getmore4less Posts: 46,882 Forumite
    Name Dropper First Anniversary First Post I've helped Parliament
    Options
    Ali_Hale wrote: »
    Nope.

    I do appreciate everyone's warnings about renting to friends. This is *one* option we're exploring.

    Even if a lender will accommodate this sort of proposal...


    You need to be 100% sure you can cover the costs without any rent coming in.
  • getmore4less
    getmore4less Posts: 46,882 Forumite
    Name Dropper First Anniversary First Post I've helped Parliament
    Options
    What rent do those 120k places make?
  • getmore4less
    getmore4less Posts: 46,882 Forumite
    Name Dropper First Anniversary First Post I've helped Parliament
    Options
    What are the repayment terms on the loan?
  • Ali_Hale
    Ali_Hale Posts: 12 Forumite
    Options
    getmore4less wrote: »
    What rent do those 120k places make?

    From looking at similar properties up for rent in our area, around £550-600/month.
    getmore4less wrote: »
    What are the repayment terms on the loan?

    It's supposed to be paid off in full by mid-2035 (ie. 25 yrs since start date). We're currently paying my dad £866.02/month.

    It would be possible to take a "holiday" from the loan if needed, but this would increase our monthly payments in future, in order to pay it off by the deadline.


    As I say, this is one option we're exploring. I realise there are a lot of potential downsides, not least the danger of mixing friends and money. I'm really just trying to establish the feasibility of it, and particularly, whether a broker will be able to offer useful advice.

    What I'm hoping for, if I do go to a broker, is either:

    1. A mortgage deal (yay)
    2. A very clear picture of what we need to do / change in order to get a mortgage deal (e.g. "Ali, you will need one year of accounts showing an income of at least £X...")

    I feel like the consensus here is that a broker would be able to offer 2., even if 1. is not possible (which I realise it may well not be).
    _________________________________________
    Ali Hale
  • getmore4less
    getmore4less Posts: 46,882 Forumite
    Name Dropper First Anniversary First Post I've helped Parliament
    Options
    You have a loan you pay £866pm and a gift back that gives you £500pm from the same source.

    quite an unusual way to reduce a IHT liability
  • neo2020
    neo2020 Posts: 50 Forumite
    Options
    Ali_Hale wrote: »
    I'm really just trying to establish the feasibility of it, and particularly, whether a broker will be able to offer useful advice.

    There's only one way to establish this: speak to a broker. No broker will charge you for the initial consultation.
  • Ali_Hale
    Ali_Hale Posts: 12 Forumite
    Options
    neo2020 wrote: »
    There's only one way to establish this: speak to a broker. No broker will charge you for the initial consultation.

    That's very reassuring, thank you! :-)
    _________________________________________
    Ali Hale
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

Categories

  • All Categories
  • 343.2K Banking & Borrowing
  • 250.1K Reduce Debt & Boost Income
  • 449.7K Spending & Discounts
  • 235.3K Work, Benefits & Business
  • 608.1K Mortgages, Homes & Bills
  • 173.1K Life & Family
  • 248K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards