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least-strict lender for loan repayment instrument on interest-only

marc1
Posts: 15 Forumite
I've been enjoying this forum on and off for last few months. Finally joined up to ask a question that I cannot find answered in the archives:
I am about to return to UK from overseas, want to buy a house. My capital (house sale, bonds, etc) will trickle through from overseas over the next year (and I prefer not be rushed on when choose to convert to sterling) AND I have no credit history etc, and am not interested in any over the lowest possible interest rates, so no mortgage for me personally. So, on with the plan: my dad is up for raising a bit of capital on his house for me to buy. He owns it outright. He is 71 so can get an interest-only mortgage of three to four years duration (75 is game over re: mortgages) with a good LTV of 60% (his house is worth 300k and wants to raise 100k). So far so already-answered-on-this-formum. But, here is where I need your experience & creativity: when my dad talked about a 3.5 year interest only capital raising mortgage with the Nationwide, they were asking for fairly cast iron loan repayment instrument/vehicle (i.e. endowments, pension cash lump sums, ISA's) and ALL in his name. He basicall has sod all in cash lump sums that are due to come in as he is retired. Nationwide were not interested in his "savings" nor any of my own assets (my UK ISA's, my Uk savings, my overseas govt bonds, etc). Any thoughts? I could maybe transfer an ISA to him but have no single ISA worth more than a few 10's of K. I could write a big fat legal agreement that I will give him all my assets when he turn 75 (especially the german-laguage bonds!) but I can't see that any lender'd be interested in that!
Any ideas which lender might be more flexible than Nationwide? Or what I could try to scare up that might be of interest to another lender? Ideally we'd like someone who would say "oh we trust you to repay the capital, it is a 33% LTV after all"
or
"if your son sends us all that Germanfederalbonds paperwork* that'll be sufficient for us"
cheers for any thoughts
Marc
I am about to return to UK from overseas, want to buy a house. My capital (house sale, bonds, etc) will trickle through from overseas over the next year (and I prefer not be rushed on when choose to convert to sterling) AND I have no credit history etc, and am not interested in any over the lowest possible interest rates, so no mortgage for me personally. So, on with the plan: my dad is up for raising a bit of capital on his house for me to buy. He owns it outright. He is 71 so can get an interest-only mortgage of three to four years duration (75 is game over re: mortgages) with a good LTV of 60% (his house is worth 300k and wants to raise 100k). So far so already-answered-on-this-formum. But, here is where I need your experience & creativity: when my dad talked about a 3.5 year interest only capital raising mortgage with the Nationwide, they were asking for fairly cast iron loan repayment instrument/vehicle (i.e. endowments, pension cash lump sums, ISA's) and ALL in his name. He basicall has sod all in cash lump sums that are due to come in as he is retired. Nationwide were not interested in his "savings" nor any of my own assets (my UK ISA's, my Uk savings, my overseas govt bonds, etc). Any thoughts? I could maybe transfer an ISA to him but have no single ISA worth more than a few 10's of K. I could write a big fat legal agreement that I will give him all my assets when he turn 75 (especially the german-laguage bonds!) but I can't see that any lender'd be interested in that!
Any ideas which lender might be more flexible than Nationwide? Or what I could try to scare up that might be of interest to another lender? Ideally we'd like someone who would say "oh we trust you to repay the capital, it is a 33% LTV after all"
or
"if your son sends us all that Germanfederalbonds paperwork* that'll be sufficient for us"
cheers for any thoughts
Marc
0
Comments
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To be honest - and I am no expert - you'd need to look at a private bank for this sort of custom deal, either the private banking arm of your UK lender or a specialist bank.
Your problem is that they only really want to play if you are looking to borrow £500,000 upwards - but if you already bank with one (presume not...) or find a well-connected broker (i.e. a wealth management IFA who also does mortgages), I guess there is a slight chance.
This article may help - http://property.timesonline.co.uk/tol/life_and_style/property/article4120314.ece - if only in getting some names.
Sorry can't be more use, but wish you all the best
d0
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