Best way for mum to help me get on the housing ladder

hebridies

poppysarah wrote: »

If they are "not that bad" then please do not accept any financial help from your mum.

People should make the most of the opportunities they have - and for your mum she should concentrate on finishing her mortgage not looking at extending her debt to help someone who doesn't need help onto the ladder.

There are too many unknowns for your mum to put debt into her name to help you. She doesn't have savings - so how can she realisticly sensibly help you?

Note my clarification above about 'not much in the way of 'available' savings'. She does have savings - just not ones she is prepared to dip into to provide me with a deposit. Which is entirely understandable.

Hebridies

bodmil

IS there a reason you haven't saved any deposit, maybe that's worth looking at first?

poppysarah

hebridies wrote: »

Note my clarification above about 'not much in the way of 'available' savings'. She does have savings - just not ones she is prepared to dip into to provide me with a deposit. Which is entirely understandable.

Hebridies

Yes it is.
In which case she isn't in a position to help you.

Do not encourage anyone to take on debt so you can get onto this insanely overinflated housing market.

You probably think I'm just saying it to be annoying like a stuck record - but your mum isn't rich - she doesn't have spare money to help you so by the same token she doesn't have any spare debt to give you either.

hebridies

CLAPTON wrote: »

We need some relevant facts here

ignoring the deposit for a moment

-how much mortgage can you raise on your salary?
-how much is a suitable property?
-do you have any debts?

No worries.

On my salary alone I can raise a mortgage of £60k. I have been out of the country for a few years though and moved around a lot so I am thinking this could affect bank's willingness to lend to me, which is another reason why we thought my mum's backling might help.

I could get somewhere for about £70K

I don't have any debts.

bodmil wrote: »

IS there a reason you haven't saved any deposit, maybe that's worth looking at first?

I did have savings but these were mostly wiped out following a recent divorce.

Thanks

Hebridies

hebridies

poppysarah wrote: »

Yes it is.
In which case she isn't in a position to help you.

Do not encourage anyone to take on debt so you can get onto this insanely overinflated housing market.

You probably think I'm just saying it to be annoying like a stuck record - but your mum isn't rich - she doesn't have spare money to help you so by the same token she doesn't have any spare debt to give you either.

Thanks for your opinion Poppysarah. I am not ignoring it but it's not going to be the sole thing I base my decision on either.

My mum knows she doesn't have any spare money floating about in a bank account to help me, but *she* does think there are other ways in which she could help. Including possibly taking out a mortgage which I then pay or one of the other scenarios in the OP. We're just trying to establish how much risk is involved really and what the options are if we decide to go down this route.

Hebridies

CLAPTON

If you can afford a 60k mortgage and buy a suitable property for 70k then the most straightforward way would be

-get the mortgage based on your own income
-for your mother to increase her mortgage so she can lend you the 10k deposit

-come to an agreement with your mother to repay the deposit money back

this keeps the ownership issues simple.

There are however pitfalls

-your mother must be confident she can afford to make her repayments if for any reason you can't repay the loan .. it's a little worrying that she has no savings which seems to suggest she has no spare income but I don't know the full facts here.

-your mortgage provider might require more than 10k deposit
-your mortgage provider may be difficult about the fact the deposit has all been gifted to you rather than you saved it up

probably best to check out a mortgage provider and see what feedback they give..check out their website first as they often have a lot of useful info there.

hebridies

CLAPTON wrote: »

If you can afford a 60k mortgage and buy a suitable property for 70k then the most straightforward way would be

-get the mortgage based on your own income
-for your mother to increase her mortgage so she can lend you the 10k deposit

-come to an agreement with your mother to repay the deposit money back

this keeps the ownership issues simple.

There are however pitfalls

-your mother must be confident she can afford to make her repayments if for any reason you can't repay the loan .. it's a little worrying that she has no savings which seems to suggest she has no spare income but I don't know the full facts here.

-your mortgage provider might require more than 10k deposit
-your mortgage provider may be difficult about the fact the deposit has all been gifted to you rather than you saved it up

probably best to check out a mortgage provider and see what feedback they give..check out their website first as they often have a lot of useful info there.

Thanks Clapton- v useful advice / things to think about.

Ta

Hebridies

CLAPTON

hebridies wrote: »

Thanks Clapton- v useful advice / things to think about.

Ta

Hebridies

I meant to add

that keeping the ownership and mortgages of the house completely separate also means that if anything does go wrong with either persons situation then at least both houses won't be at risk at the same time... not that I'm saying anything will go wrong but clearly the lack of savings is a worry.

VIGILANT22

Hebridies...Pls note this suggestion of yr mother remortgaging is not as straightforward as it looks.....it is not as clapton suggests "your mother must be confident she can afford to make her repayments".........the lender will decide that...........as for the suggestion of going on websites!...criteria is only there as a guideline..........remember this site here does not give advice........

hebridies

VIGILANT22 wrote: »

Hebridies...Pls note this suggestion of yr mother remortgaging is not as straightforward as it looks.....it is not as clapton suggests "your mother must be confident she can afford to make her repayments".........the lender will decide that...........as for the suggestion of going on websites!...criteria is only there as a guideline..........remember this site here does not give advice........

Yep - that's cool. No worries. We will, of course, be getting professional advice when we've done a bit of our own research. Just useful to get different perspectives / ideas just now.

Ta

Hebridies