Advice Needed - Salaries etc

m3mul

Basically I have had an offer accepted on a property for £160,000 and will be putting down a deposit of £42,000 to meet the 75% LTV ratio.

My mother and step-dad are currently in the process of selling their property but due to recent unemployment, they will be left with more or less no cash following the sale and repaying £10,000 which they owe me.

Therefore, the general idea is for me to purchase the property and live there with them for the next few years. They will be contributing all interest payments on the mortgage as 'rent'.

Although I have an agreement in principle for a mortgage, this is based upon my salary of £19,000 and my girlfriends of approx £14,000. However, she is employed as a trainee dental nurse with the NHS. Her employment automaticaly ends on 11/09/09 following completion of the course.

Therefore, could someone please advise whether it is possible to obtain a mortgage based upon our current employment and her potential employabilty, but also by stating that I will be receiving an additional income of £500 a month from parents?

The other option is to try and obtain a joint mortage with my mother (£24,000) a year but believe she will have very poor credit following defaults on current mortage.

Thanks

Mrs_Bumble

Does your girlfriend have a permanent position to take up following the end of her training on 11/09/09?

If your mum has defaulted on current mortgage then not an option.

m3mul

No she doesnt currently have a permanent position to take. However, they will be taken on some of the trainee nurses within the hospital. She is waiting to hear whether she will be one of them.

Mrs_Bumble

I would wait until you know if she has employment then.

m3mul

This is slightly difficult as effectively we will be homeless in around 1 months time. Therefore, partents will need to find alternative accommodation and house I want to buy is likely to be gone (only reason I am buying is property is worth alot more).

Is it possible to get the mortgage by effectively renting property to parents or only if I went down a formal BTL route?

Mrs_Bumble

You are going to be living in the property as well?

m3mul

Yes - I currently live at home with my parents. I am looking to buy this property because I feel it is worth alot more than £160,000 although I am of the opinion that house prices will fall even further in the short term.

The idea is for my parents to live there and pay me rent which allows them to save for a deposit, say for the next 2-3 years. By this time I will be fully qualified and likely to be earning £30k+. Can then either move in with my girlfriend or sell the property for a profit and buy something smaller.

Main problem is that we need to either get a mortgage approved in the next 2 weeks or so, or find rented accommodation. Meeting the morgage payments will be no problem what so ever really but proving that to the lender is the problem.

McKneff

mm, its all very well having these plans but what happens
if, when you all live together and there is a major row and parents move out into other rented accommodation

You really should only take on a mortgage that you and your OH can afford.
Thats why so many people have lost there homes in recent years.

m3mul

Thanks for the reply and I see your point of view.

However, there is really little alternative and considering that I live with them at the moment anyway there isnt much difference. My girlfriend is out of the equation really as she is likely to continue living with her parents for the time being.

I have help my parents out finanically over the last 2 years and there is no way that they would put me in such circumstances.

All i need to know really is how I go about getting a mortgage.

happybroker

you're not going to get a mortgage to do this in my opinion. Could you not discuss with your parents and a solicitor ways of you possibly helping them out this predicament using the cash you have in the bank and forming some sort of contract that is financially beneficial and makes good sense between you and your parents?