Advice Needed - All Appreciated!

Elmers

Am looking for any advice.....all of it appreciated. I have been searching the forum, but thought it was time i bit the bullet and asked my question -or several......

My Boyfriend and I are looking to buy a % of my boyfriend's parents house. We have lived here for 2 years and have been paying him rent. He has now offered for us to buy a % of the house to get on to the housing market. We were initally looking at owning 50% of the house but my partners Dad believes that we will be able to get a mortgage for more. i.e 70%

The house is valued at £284,995, our combined salary is £48,000 per annum. My mum and dad have offered me £20,000 as a gift for a deposit.

However, we both have debt on credit cards mine being in the region of £6,000 and my partners in the region of £4,000.

We are thinking of going to a broker to gain advice on the best mortgages out there. We are considering an Interest Only mortgage for the 1st couple of years.

I am really clueless regarding mortgages, will our debt effect our chances of getting a mortgage, we both have credit score of 999. Are we better off using some of the money from my Mum and Dad to pay off our debt, but then this will reduce the deposit, do we need a 10% deposit if we are only getting a mortgage for a % of the value of the house??


Any thoughts or advice would be great! Hope it all makes sense.

opinions4u

I don't think you'll find any lender who will arrange a mortgage on a shared ownership property which isn't operated by a recognised provider (e.g. housing association, local authority etc).

We were initally looking at owning 50% of the house but my partners Dad believes that we will be able to get a mortgage for more. i.e 70%

No lender in the current market is going to lend more than the value of the share that the mortgage is secured against you.

This is a non-starter. Sorry.

LeeSouthEast

That said, some providers do (or used to do) 'family' mortgages for buying houses within the family? Might be worth looking into.

(or so I've heard... never done it, personally. I'm a Housing Ladder Virgin).

_Andy_

I doubt you'll find a lender happy to do it on interest only without a repayment vehicle in place.

CloudCuckooLand

Best to clear your debts.

Even if you manage to negotiate your way to an interest-free, shared ownership, family mortgage, (which is a low likelihood) it will fall down with the debts...