Mortgage transfer

Majeeko

I rent a property with my partner, my landlord has asked if we would like to take over the mortgage, as he is suffering from financial hardship and needs a lump sum of money. His offer is this: He adds our names to the mortgage, we pay him a lumpsum of 20-25k (yet to be decided) we then get a solicitor to draw up a contract stating that he wants nothing more to do with the property with his name then removed from the deeds. I have no idea about mortgages so I need some advice on if this is a good deal or not. It is an interest only buy to let mortgage with 207k lent in equity initially and 18 yrs left on the mortgage. At present the interest is 5.4% and will be revised in 2010 to 1.65% above base rate. We currently pay £1000 PCM and the mortgage payment would be a few pounds more each month. The property is a maisonette with a large garden, three bedrooms, first floor with garage to the rear located in SW16, London. It was valued in 2007 at 280k. As my partner and I don't have the best credit but without any ccj's and defaults etc we think it may be the only chance we get in the next few years of getting onto the property ladder. Is it ok for us to live there on a buy to let mortgage and is this a good deal given our circumstances?

Thank you

jayphe

The terms on most Buy-To-Let mortgage deals don't allow you to live in the house yourself, so that would probably make it a non-starter.