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Normal Mortgage or buy to let?

pennyfiddler
pennyfiddler Posts: 6 Forumite
in Mortgages & endowments
We want a mortgage to buy a house as an investment. Our daughter will live in the house and will pay the bills, she will not pay the mortgage. We have been advised to give her a tennancy agreement. What type of mortgage do we need? This will be a home for our daugther and we have no intention of renting it out to anyone.

Comments

  • Mrs_Bumble
    Mrs_Bumble Posts: 1,028 Forumite
    A lot of lenders are happy for you to have a second property with a close relative like a daughter living there.
    I am a Mortgage Adviser

    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Misstique
    Misstique Posts: 54 Forumite
    Is that the case Mrs Bumble, I thought lenders didn't like close relatives in property rentals.
    Learn from the mistakes of others - you won't live long enough to make them all yourself.
  • luckyfool
    luckyfool Posts: 1,683 Forumite
    Misstique wrote: »
    Is that the case Mrs Bumble, I thought lenders didn't like close relatives in property rentals.

    They don't . . . if its a rental. If its for a close family member and the mortgage is taken on as a 2nd residential mortgage then its fine. Of course the lender has to be satisfied that you can afford any existing mortgage as well as the new one on the property being bought.

    Buy to Let mortgage lenders don't like or normally allow properties to be rented out to close blood relatives.
This discussion has been closed.
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