New house for the family

dazultra

I am currently am the proud father of two gorgeous kids and I am paying rent of £1000 a month for the two bedroom house.
My mother has a flat with the mortgage alomost finished, £2000 outstanding.
my question is can I use the equity in my mums flat aswell as a mortgage to buy a new house?
Is this useual practice?
Me and my partner work, I am full time and my partner is on maternity leave, but was working part time and is going back as part time.
I would need to buy something within the next year as my oldest is going to attend school so need to get the ball rolling soon.
I appreciate your time and effort and thank you for reading.
Cheers
Daz :beer:

CLAPTON

you will need a deposit (i.e. cash) of a minimum of 10% but more likely 15% of the property valuation
and you will need a mortgage for the rest based on your income.

if your mother wants to give to 2,000 (cash) or anything for that matter then thats wonderful.

but, what do you mean 'use the equity' ; you need cash for the deposit.

BitterAndTwisted

I don't think you can use the equity in your mother's home because it's her equity, not yours but you could get a joint mortgage with your mother. Not that I'd recommend it, situations like that are fraught with potential problems down the line. Only a fool would consider it.

dazultra

Hi Clapton,
Cheers for the reply. I was thinking of paying the £2000 to finish the mortgage and then somehow remortgage (if thats the correct terminology?) the property so we would have The mortgage for around £200.00 and the money from my mums flat.

dazultra

What if I put the flat under my name, which is possible?

g_attrill

Problem is that if you default, you lose the house and she may well lose her flat. If you mortgage alone, you just lose your house.

dazultra

That is something I dont even want to think about, but I take it, it is possible, but how do you get the money from the almost finished mortgage flat?