Joint mortgage with parents - is it feasible?

babysaver

Hi there. My parents and I are thinking of selling our respective homes and buying a bigger property to share. We would have around 50% deposit (mostly their input). The plan would be that I would pay around 80% of the monthly mortgage payment. They are both early 60s and still working although hoping to retire in the next few years. My question is would we get a joint mortgage? Their retirement income would be enough to cover around 20% of the monthly mortgage.

The alternative is to sell one of our properties and extend the other. Any thoughts on which would be the best option would be appreciated....

Thank you

Thrugelmir

A shared property is not out of the question. However you say your parents are in their early sixties. So how long are you proposing the new mortgage to be paid over? Without wishing to sound morbid, no one lives for ever and every year, life expectancy reduces. Something you need to seriously consider if your are expecting your parents to fund 20% of the mortgage repayments.

If you are funding a 50% deposit. How much are planning on spending on a joint property ?

bigfathen

Yes - the age is the issue here I think. I think you will be stretched to find a mortgage with a term which lasts for longer than the number of years it takes for the oldest parent to reach 75. This means repayments are spread across a shorter number of years and therefore you may struggle to find it affordable.

Annisele

How much do you earn, how much do your parents receive in pension income, and what is the purchase price of the house?

(Trying to determine whether the mortgage is likely to be affordable on your income alone or not).