Financing options for 2nd house???

davelee1097

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Cannon_Fodder

How about you finish repaying the £5k to your Mum, the £10k to the building society..etc etc etc etc...

davelee1097

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Cannon_Fodder

I am afraid it is not totally irrelevant. Your credit-worthiness will affect the options available. The whole picture needs to be known otherwise incorrect suggestions will be given.

Suggestion 1 - your Mum borrows £20k, because that is all she can afford on her salary multiple...gives it to you so you have a deposit and go borrow on your own...No point as your credit history won't allow you to get a mortgage.

Suggestion 2 - your Mum raises £20k, and you ask her to be guarantor or enter into a joint mortgage, but you get turned down because of your credit history.

Suggestion 3 - your Mum tries to raise the full price, say £80k, using your income to support a joint application. This is turned down due to your credit history.

All 3 of these failed applications further worsen your credit history.

Suggestion 4 - your Mum raises the £20k, but to keep your credit history out of it, she says she wants a Buy-To-Let mortgage, and gets told she needs a 25% deposit, so doesn't have enough...

etc, etc, etc

On her tiny salary, your Mum is a star to be a home-owner, at all. Trying to turn that into a mini property empire is foolhardy. The average First Time Buyer age is around 30. It'll be alot easier after a couple of years sorting the past out, to then build a deposit for the future and make the jump when you are truly ready.

I respect your post of last year, trying to avoid going bankrupt, taking responsibility etc. I am, however, concerned that you risk going backwards, by being impatient, now, again.

poppy10_2

davelee1097 wrote: »

I have since sorted myself out but am in no position to buy a house again.
My Mum on the other hand is. She has offered to enquire with her mortgage company regarding additional borrowing against her house.

Why would you do this to your own mother?

I can't believe you'd want her to put her own home at risk, so that you can have another go at home ownership, which you're clearly not cut out for. You need to get your spending habits and debt under control, she's already bailed you out once by paying off your credit cards for you. If she is unable to meet the increased repayments on her remortgage she could be made homeless. Honestly, I really don't understand some people :mad:

davelee1097

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jem16

davelee1097 wrote: »

Sorry I think you've all got the wrong end of the stick!

My Mum has been thinking about releasing some of the equity in her house to buy another investment property, She will be renting it out to us for the same price as what we are renting our house now. She will actually have the whole mortgage paid for by us, Including her house.

Your mum will no doubt trying to be the best mum she can be and trying to help out her children with what she thinks is a good idea but in reality knows little about.

I'm not putting any pressure on her, it is all her idea.

Then be a good son and explain all the pitfalls to your mum and say thanks but no thanks mum.