Taking over parents mortgage

jojo1974

Hi, we are currently living in a house that my parents have a mortgage for. My dad has suggested that we take over the mortgage as we already pay the rent that covers the whole mortgage. We have looked a few options but need some advise.

My dad said changing the names on a mortgage but as far as I am aware he must stay on the mortgage.

Or us remortgaging completely.

My main question would be that the mortgage is for £135,000 and the property value has fallen since then. We do not have large amounts of cash available as a deposit so how would we go about changing over the mortgage without having to try and raise at least a 10% deposit.

Many thanks

Jo

trynsave

I'd think you'd struggle without a good deposit. Is there any equity in the property or does your parent's outstanding mtge mean that the property is in -ve equity? If there is any equity could they 'lend' it to you and you pay them back in the future?

I'd guess that any lender you approached would only give max 90% - 95% of what the property is worth now, not necessarily enough to cover your parent's current borrowing.

Also you don't say if your income will cover your multiples for borrowing.

Trying_to_be_good

What would be the purpose of the mortgage being in your name(s)? The title deeds would also have to be amended to your name(s).

If the aim is to avoid inheritance tax it won't work. if your parents continue to live in the house.

If your Dad doesn't live there, and this is a buy-to-let type mortgage on the house where you live and pay rent to him, you will need to buy the house (with a new mortgage), but if there's equity in it he may be able to gift you the equity as your deposit. It all gets quite complex (doesn't it always?) so you're likely to need a mortgage broker.