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Private Lending from the people we are buying from.

Robcymru_2
Robcymru_2 Posts: 10 Forumite
in House buying, renting & selling
Me and my girlfriend are looking to buy a house off her parents in 18 months time, I however am on debt management from debt I occurred during uni, I will have paid this off in the next year and we will be able to easily meet the monthly payments but we envisage having problems getting a mortgage. Her parents have kindly offered to be our lenders, but neither them or us have ever done anything like this before, is there anyone else who might have gone through this before that is able to give some advice ?
Thank You
«1

Comments

  • maninthestreet
    maninthestreet Posts: 16,127 Forumite
    Part of the Furniture
    It maybe better if they acted as guarantors for any mortage you apply for.
    "You were only supposed to blow the bl**dy doors off!!"
  • DVardysShadow
    DVardysShadow Posts: 18,949 Forumite
    maninthestreet wrote: »
    It maybe better if they acted as guarantors for any mortage you apply for.
    Disagree. If OP and gf default, lender can call on the guarantee and take the house. Parents as guarantors are the losers. If parents lend as a mortgage, they get the house
    Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam
  • Robcymru_2
    Robcymru_2 Posts: 10 Forumite
    DVardysShadow wrote: »
    Disagree. If OP and gf default, lender can call on the guarantee and take the house. Parents as guarantors are the losers. If parents lend as a mortgage, they get the house

    The house could still be legally theirs until the total amount is paid, we were hoping to pay off a certain amount for 6 years then apply for a mortgage to pay off the amount in full at that time... we are just trying to think of a way to protect all parties.
  • poppysarah
    poppysarah Posts: 11,522 Forumite
    You have 18 months to sort out your debt and save a deposit and buy a house as an independent couple.
  • Robcymru_2
    Robcymru_2 Posts: 10 Forumite
    poppysarah wrote: »
    You have 18 months to sort out your debt and save a deposit and buy a house as an independent couple.


    Sorting out Debt in 18 months is not a problem but saving for a 10% deposit would be. It would be the ideal situation though.
  • poppysarah
    poppysarah Posts: 11,522 Forumite
    So who's set the 18 month timetable?

    I'd work at your own pace so you're happy with the outcomes.

    The house prices might not be the same in 18 months time either.
  • Robcymru_2
    Robcymru_2 Posts: 10 Forumite
    18 months is due to other half work commitments and having to move area, its either taking up this opportunity or going back in to renting.
  • theartfullodger
    theartfullodger Posts: 15,796 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Robcymru wrote: »
    18 months is due to other half work commitments and having to move area, its either taking up this opportunity or going back in to renting.

    Sounds like you're gonna have to be patient & sort your finances out 1st, try & save some more, then be in a better position later...

    Just like pretty much all folks were, say, 40 years ago..
  • Robcymru_2
    Robcymru_2 Posts: 10 Forumite
    Sounds like the advice is not to enter in to agreement with her parents then ?
  • treetrunks
    treetrunks Posts: 152 Forumite
    if you've got someone willing to do this then why not. Get things drawn up by a solicitor, presume that interest to your gf's folks would be less.
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