Right to Buy Guarantor Mortgage?

Sacha

Hi all, I'm a newbie hoping that someone wise might be able to advise me!

My mum wants to buy her council house under the Right to Buy scheme (we are in Scotland) but is over 70. We wanted to get a mortgage in her name (it can't be in joint names as I don't live with her) but for me to make the payments. We initially thought she'd be too old to get a mortgage in her name, but have spoken to Bank of Scotland/Halifax and they will give her one up to a certain amount (so presumably other banks would too). This amount would not be enough to pay for the house, so I would have to take a personal loan to cover the extra.

I have heard of guarantor mortgages, where it would be in her name but I would pay it (hence it would be based on my income and we could get a larger amount), but B of S have said they no longer do these mortgages for this scheme.

I wondered if any one you had been in similar circumstances and could recommend a bank that may offer a guarantor mortgage? I would be really grateful if anyone could advise me on this, before I start trawling round all the other banks, or resign myself to paying a mortgage and making personal loan repayments!

All suggestions welcomed as I'm not very clued up about financial matters!

Thanks!

dwight-van-man

Hiya, Northern Rock will do RTB with a guarantor as long as the guarantor is over 25 and has thier own mortgage. Additionaly, the guarantors income must cover their own mortgage plus the new mortgage. The loan is based on open market value so you get tho choose from the lower LTV products. I work for NR so I can't comment on what other lenders might offer, but for a complex proposition like this, I would definately speak with a broker.

Sacha

Thanks for your reply. I should probably have said that I do not have my own mortgage at the moment. I am 26 though.

dwight-van-man

We probably wouldn't be able to help then I'm afraid. Theres bound to be a lender who will help - I'm sure one of the brokers on here will step up with an idea or two....

MortgageMamma

I would be able to tell you if this is doable or not but would need to take a lot more informaiton from you, I've got to be very careful in my offers to help because I don't want it to look like I am touting for business as I am not. I have to say that If you want,, once I have assessed your circumstances you could choose to go direct to the lender who will do it and you are under no obligation to me whatsoever.