Buying Parents Home

hem852

Hi

My parents have got into trouble with their mortgage and I am currently, with the help of a broker, looking at ways I can help them.

The broker is suggesting I get a mortgage and buy the house off them. They will gift me the equity and I get a mortgage for enough to pay off their mortgage and a secured loan they have. Then I rent the house back to them for enough to cover the mortgage payment.

My concern is, is this legal as I would then have two residential mortgages (the broker is not suggesting a buy to let mortgage as we need one which accepts a gifted equity deposit)?

If I wanted in a few months to move home myself would having this second mortgage affect me when trying to sell my current home or buy another? Am I going to find most lenders run a mile?

Thanks in advance for any advice.

Regards
John