Feasibility of partial property purchase from parent?

TheOneTrueAnt

Hi all,

This site's been a great help to me recently but I've got a bit of a specific question I'd like to see if anyone can help with?

I've just graduated university and have been working full-time for about 8 months. For the last 3 years I've been living in a flat completely owned (i.e. no mortgage to pay) by my mum. What I'd like to know is how easy would it be for me to purchase half of it from her? The flat's value is about £120k so I'd be looking at about a £60k mortgage which I'd like to take over as long as possible to minimise monthly outgoings (I could probably afford up to about £400 - £450)

I also have a fair bit (~£5000) sitting on credit cards that I'd like to take out a personal loan to pay off over about 2 years. Would taking this loan out before / after the mortgage affect my likelihood of being approved for either it or the mortgage? Also would it in anyway be possible to borrow this money along with the mortgage so I'm not paying £350 in mortgage + £350 in loan repayments (which I can cover but would prefer to avoid )

Sorry for all the questions but any help would be very appreciated, obviously I'll be happy to fill any details I've left out!

Thanks again,

-Ant

homer_j_3

how much do you earn? are you employed or self employed?

TheOneTrueAnt

Hi, firstly thanks for getting back to me, I earn 24700 and am employed full time.

-Ant

homer_j_3

you should be able to borrow enough on that salary as you you are trying to borrow less than 3 times your salary.

I would think based on that, a mortgage company will still find affordability if you were to have the credit card still so I would get the mortgage sorted first. I would then after completion, i.e they have given you the money, then apply for your personal loan.

An alternate solution may be to look for a 0% lifetime balance transfer credit card - check the MSE credit card threads and find out what the hot card of the moment is that will allow you to transfer your credit card debt on there.

You can then just make the affordable payment, which will 100% reduce your debt by that amount you repay each month* providing you operate within the t&c's of course..

TheOneTrueAnt

Thats good to know, Thanks very much!

now just to actually go about getting it sorted...

-Ant

Faster_Loans

Hi TheOneTrueAnt,
You should be able to get a mortgage to consolidate your debt.
This seems a good idea to reduce your payments. The main problem for a lender is security. As you know if all else fails they will take possession. That is a bit difficult if your parents have 50% ownership.
You need to discuss this both with your parents and an advisor. One solution is for you to have 51%?
Regards,
Alex

MortgageMamma

Faster Loans

I suggest you change your signature as it is blatantly touting for business and against site rules. This has been reported to the forum moderators who will not doubt speak with you on this matter.