Mortgage to buy Mother in Law a house

monaco_2

We are planning to buy my Mother In Law a house on interest only.

We won't be charging her rent.

Does anyone know the best way of doing this?

I had considered buy to let, but not actually letting, but we wouldn't be able to borrow enough, based on the 218.18 calculation. (ie the house is £200k and rental value would be approx £500 per month, allowing onlu £109k)

Any ideas?

Barney088

It depends on your current situation, what debt (or mortgage) you have and what you can afford. SOme lenders will allow this to happen if you can evidence that you can afford it. Second homes, holiday homes etc are not uncommon.

What do you need to borrow and what are your earnings? Alterativly, if you don;t want to paste that info here for discussion, visit a mortgage broker for full advice on the options.

There is always another option for you.

HGLTsuperstar

Assume she's selling her own house at some point? And you're not going to charge her rent....if this has anything to do with inheritance tax etc, you are going to come unstuck and need to get professional advice on this before you go any further.