Join parents mortgage

nwjr

Hello,

I'm looking for some advice to see if this is possible, or something similar is possible. My parents have 65K mortgage to run for the next 5 years. Bascially due to circumstances they cant afford the payments and have to either sell or lose the house. I would like to act as a "guarantor" and join the mortgage, but then get it spread over say 30 years - because I have 30 years work in my, my parents only 5, but it will mean they can afford the payment, i just dont have the cash to cover the current payment. The payments will be much less so they dont have to sell the house now, but maybe in 5 years at retirement. Is this possible? What could the problems be?

I would greatly appreciate any sound advice on if this is specifically possible or something closely similar, so thanks in advance,

Nicholas

CloudCuckooLand

Let them sell and downsize. Taking this on, when you will undoubtedly want your own place in a few years, is a nice idea, but falsely optimistic.

A 30 year mortgage is insanity. 25 years was long enough. Any more defeats the purpose of counteracting retirement living expenses.

nwjr

Hi thanks for the reply, but really I just wanted to know if it is possible. I already have a mortgage so that isnt a problem. The 30 years part is just because we want to keep the outgoings down for the next 5 years. If my parents sold now, they'd have hardly anything to play with and face taking out another mortgage, move down the ladder and have the same problem with cash in the pocket. If we invest in the property over the next few years its value should go up. So really I just need to know if we can manipulate the morgage so?

Thanks

Nicholas

Thrugelmir

nwjr wrote: »

If my parents sold now, they'd have hardly anything to play with and face taking out another mortgage, move down the ladder and have the same problem with cash in the pocket. If we invest in the property over the next few years its value should go up.

With 5 years to go to retirement. Now is not the best time to be speculating on property.

Financial plans should be based on known facts.

Annisele

If you already have a mortgage of your own, then it might not be possible to add you to your parents' mortgage in any event.

What is your plan at the end of the five years? If you're just betting on house prices rising, that might not help your parents all that much if part of that rise ends up in your pocket (or of course if there is no rise at all).

What is the value and outstanding mortgage of your property and theirs? What is your income and theirs? Are the 'circumstances' that prevent them from affording their own mortgage now likely to be resolved in five years time?