Buy to Let Mortgage from parents

comps_2

HI, my parents have a house worth £350k which is mortgage free and to be left to me in there will. I went bankrupt 2 1/2 years ago so cant get a mortgage myself. I am currently renting, but my parents have offered to lend us £100K from there collateral in there property. Is this possible for them to do this on a buy to let mortgage, and would they be able to use the collateral in the property as the deposit for the house.

Cannon_Fodder

Your parents can mortgage a property to release equity. If their income supports it, they can do an ordinary (re)mortgage.

If its where they live, they cannot do BTL.

If its a second house, they can try for BTL, but as the fees and rates are higher, its not a particularly efficient way of borrowing in order to lend you £100k. And I'm not sure what hoops have to be jumped through to prove its a BTL, i.e. proof of tenants...are they happy paying the monthly mortgage on £100k, on top of losing the equity ?

Not sure where any of this gets you though. You will have a £100k deposit, and still be unable to get a mortgage for your own place, with your credit history...