House inheritence mortgage help needed please?

jedimum

Firstly what a brillant site! Only discovered it whilst serching for info.

I will be as brief as possible, this is my situation!

My mum in law recently passed:( and her two children where jointly left the house. (As it was the family house they were trustees on the deeds) My partner would like to buy the other half of the house from his brother, as a rental investment.

He does not have a mortgage. Whe are due to see a couple of mortgage adivsors at the weekend; do we ask for a buy to let or a FTB mortgage?

Any thoughts or ideas would be most welcome!

VIGILANT22

After the mortgage adviser/s assess your circumstances, they will be able to advise what status you are and what you can apply for.........

jedimum

Ok, so its all in their hands then. Sooo they decide what mortgage to give us, we cant tell them what we want?

I would hope a 50% deposit would stand us in good stead?

Thank you for a quick reply!

VIGILANT22

Hmm..no you cant tell them what you want...

Quote: do we ask for a buy to let or a FTB mortgage?

This would depend if yr buying a property to let out....do you know what you want to do??

jedimum

In an ideal situation we would rent it out. So that it would be an investment for our childrens future.

It all depends however on money, how much we can borrow so a; buy out his brother and b to make the house rental.

Does that make sense?

Thanks

VIGILANT22

jedimum wrote: »

In an ideal situation we would rent it out. So that it would be an investment for our childrens future.

It all depends however on money, how much we can borrow so a; buy out his brother and b to make the house rental.

Does that make sense?

Thanks

Yes and no...at the end of the day the decision is made fo you as to what criteria you meet when borrowing other people's money (lender)............

jedimum

I think we will just take it one step at a time!

magpiecottage

He will not be a First Time Buyer if he has ever owned a home before (obviously).

Unless at least 40% of it is occupied by him, or a close member of his family then it will be buy to let.

Close member of family would include spouse, children, siblings and so on. It would also include parents although clearly that would not apply these circumstances.

Buy to let mortgages are NOT subject to statutory regulation. There is no right to take any dispute to FOS and there is no protection from the Financial Services Compensation Scheme.

That does not mean they are a bad thing, only that you need to be aware that it is treated as a commercial, rather than a consumer, contract.

jedimum

To clarify a bit more...
My partner has never had a mortgage. Our current house mortgage is only in my name.

The house in question has been in the family since being built in the 1930's and always have family members live there until they died.

Sorry what is FOS?

Pincher

It's certainly a good time, with the £250k stamp duty holiday.

I don't see why the brother-in-law can't be a mortgage lender.

You can do a DIY mortgage, where you agree on an IOU, e.g. 5% fixed interest + principal over 15 years. He transfers the title, but maintains a lien on the property. Your wife pays him the monthly payment. The principal owing should be worked out annually so everyone is clear where they stand. If your wife sells, she pays the remainder principal from the proceeds. Do it as a contract, witnessed and notarised, and I don't see anything wrong with it.

If he does not live there, he can give his consent to let,
and the chain is tenant pays rent, your wife pays the brother-in-law.
If you agreed on a tracker, like BOE+2.0%, you will probably be paying less on mortgage than you get in rent every month.

In a sense, this is the golden time for BTL, rental yield is 5%, but the mortgage is 2.5%. You have to had done it four years ago to end up with the 2.5% BTL mortgage rate now, of course.

VIGILANT22

Pincher wrote: »

It's certainly a good time, with the £250k stamp duty holiday.

I don't see why the brother-in-law can't be a mortgage lender.

This has to be one of the most stupid and irresponsible posts I have ever read on here............