Mortgage - how does it work?

Loonytunes

Long story but basically I've got no savings and am about to start a new job with a 1 year contract to have no chance of getting a mortgage. However a house has come up for sale rediculously cheaply near me and my parents are talking about helping me out. They would be able to get a mortgage (only talking about £35k) but how would it work? Could I be named on the mortgage as well as them? Could the three of us be named on the deeds with them eventually transfering solely into my name?
Really not sure how it all works and am just at the wondering stage! Thank you!

wymondham

main thought here is do you know why the house is so much cheaper than others?

Loonytunes

Not been to see it properly yet but looks as though its a reposession and looks like the previous owner/tennant has ripped out all the carpets and the light fittings are all just hanging wires! Nothing too drastic but would put some people off.

wymondham

Loonytunes wrote: »

Not been to see it properly yet but looks as though its a reposession and looks like the previous owner/tennant has ripped out all the carpets and the light fittings are all just hanging wires! Nothing too drastic but would put some people off.

I'd hold fire on any decision until you've managed to have a good look at it, and estimated how much it needs spending on it to make it safe etc...

Loonytunes

Not putting too much into this one until I've had chance to look at it properly as you say. Really just wondering how the mortgage situation would work/even if its possible to do it that way.

happybroker

in answer to your question, yes it is possible to have 3 people on a mortgage and the title though not all lenders do it. Obviously your parents would need to meet lenders criteria on income, age etc etc and when your own income is within lender's criteria you can apply for the mortgage and title to go into your own name, it's called a transfer of equity.

herbiesjp

Getting the mortgage in this way is relatively easy.

Meeting the criteria is the hard part in some respects.

You do not say what the purchase price is, and what deposit you would be putting down, as this will also impact on how many deals would be available to you.

The condition of the property may also impact on a lender willing to release funds until certain work has been carried, but generally as long as it is habitable you should be fine - the survey and valuation figure will reflect its current condition and value

Loonytunes

Thanks for your replies, it's good to know it could be a possibility. My mum has just found another one in my area for £50k that looks again like a reposession but seems to need nothing major doing to it so am off for a viewing tomorrow. Am feeling a bit more hopeful now.