Concessionary Mortgage - Purchase from Mum

herbiesjp

zzzLazyDaisy wrote: »

I think you may have misunderstood.

If the property is valued at £80k, and your mum agrees to accept £70k then the £10 difference is viewed as a gifted deposit from your mum - but the purchase price will still be £80k (ie the difference between the mortgage and the purchase price = the deposit)

Although earlier you said



Which is not a 10% deposit.

Exactly.

As for lenders - wait and see what L&C come back with.

They should be able to find something pretty quickly assuming you fit criteria.

Soot2006

angel_nicx wrote: »

We're going to talk to her about the difference in price, just using the £70k as an example really. I realise we would have a mortgage of £80k to repay. Any ideas which mortgage lenders deal with these kind of purchases?

As always - thanks!!

No, you'd have a mortgage of £70k to repay! Since you're borrowing the £70k from the bank and receiving the deposit of £10k as a gift from your mum.

angel_nicx

Soot2006 wrote: »

No, you'd have a mortgage of £70k to repay! Since you're borrowing the £70k from the bank and receiving the deposit of £10k as a gift from your mum.

Now I'm confused! £80k or £70k mortgage!?

herbiesjp

If the property is worth £80k

And you are only paying your mum £70k for it.

You will have a £70k mortgage, as she will have gifted the £10k to you in the transaction i.e. the £10k she is happy not to receive from the sale.