Does this have to be BTL mortgage?

phlash

Any wrote: »

Thanks NHO. I was already getting stomach ulsters imagining that we need to remortgage our house up to the roof:)

You still will be....(i.e. your mortgage will still be the same size regardless of where it is secured? They would both still be against your name?)

Any

phlash wrote: »

You still will be....(i.e. your mortgage will still be the same size regardless of where it is secured? They would both still be against your name?)

No I won't. My brother wants to take this on and the only way I would have to step in would be if he couldn't buy it (ie he doesn't have 25% of deposit).

This way either he gets the mortgage himself or we get it as joined but either way I won't have my current house up to 90% of LTV - that house is my in OH's name and the mortgages would be kept separate, therefore we can get good deal when we remortgage our home.

(PS when I say "I" I really mean myself and my OH).

phlash

I guess therefore it will come back to your brother's income multiple and ability to service the mortgage as to the appropriate level of support in buying needed by yourself.

From a planning point, it is advisable you have a stake in the house as your CGT allowance could be used on its sale, hopefully reducing the future tax bill if you sell for a gain.

Any

phlash wrote: »

and think about what happens when the flat is vacated by the father. i.e. The residential mortgage interest...i.e.can it be used to deduct against any lettings income for the future?

When it will be vacated by the father then I understand we will have to ask for Consent to let or swap to BTL mortgage, which few years down the line shouldn't be a problem as we will then hopefully have mortgage only on 75% LTV.

The issue is our current problem, my father will be soon homeless and we need to find roof over his head.

Any

phlash wrote: »

I guess therefore it will come back to your brother's income multiple and ability to service the mortgage as to the appropriate level of support in buying needed by yourself.

From a planning point, it is advisable you have a stake in the house as your CGT allowance could be used on its sale, hopefully reducing the future tax bill if you sell for a gain.

Thank you for that.

The FA already told him he can get the mortgage, but as then he wanted 5% of the price of the house as a fee I am not sure how dodgy he was. I will offer him this option as a back up and also tell him about the pluses of doing it like this.

phlash

Adding your husband might work even better. i.e. say 25% you 25% hubby 50% brother.

You would want to structure this as a "Tenants in common" agreement, not a "Joint tenancy".