Predicament [Please Help]

alipops1986

clutton wrote: »

you will find it probably very difficult to "take over the mortgage" or buy the house in 6 months as most mortgage products have ERCs Early Repayment Charges which mean that if you redeem the mortage in, say, less than 5 years, you will probably have to pay 5% of the amount of the mortgage as a fee.... read your small print very carefully - it is always itemised in great detail. Plus lenders charge "closing fees" "deed fees" solicitors fees, obviously, mortgage brokers fees, valuations fees - all these will eat into your £10k VERY quickly

best of luck

As far as i am aware, my parents are just going to get a loan out in the amount necessary, and pay cash so to speak. Then, i will make the loan repayments until i can take out a morgage and pay them back the loan.

Thanks to all of you for your responses. Am feeling alot less guilty now i have thought about it and had some impartial comments, thankyou.

I just hope we secure the house now!!

Turin_Turambar

Your parents will be penalised for paying back their £80k loan early, 6 months after taking it out

alipops1986

Turin_Turambar wrote: »

Your parents will be penalised for paying back their £80k loan early, 6 months after taking it out

As i say they have arranged the details and it's all sorted, without any issues so i'm led to believe.

Perhaps they'll put the money i repay into an account and feed the money back over a period of time to clear the debt.

Catblue

If you have £10K deposit, then why can't you use that to put that down as a deposit on a house with a price of £80K?

It seems that you can't get a mortgage right now but you can in six months' time? Then wait six months and buy a property with your own mortgage then. That's the obvious solution.

Your parents really do not need the hassle of your brother's problems plus having to get £80K into hock to help you out. What if you lose your job or split up with your partner in the meantime? What if the house market tumbles further and your £80K house isn't worth £80K any more?

You say "am very lucky my parents can afford to do this" but obviously they can't afford it. If they could afford it, they wouldn't need to take out a £80K debt.

Your parents obviously are having some misgivings about this, otherwise they wouldn't have mentioned it. I suspect that they think they might need a bit of spare cash to help put a roof over their grandchildren's heads at some point.

Six months really is not long to wait to get a house entirely on your own. It will be much easier and without all the emotional baggage that borrowing from family comes with.

Not what you wanted to hear, sorry but that's just my opinion.

Fire_Fox

How are you going to fund doing up the house and paying off the loan at the same time?