Family mortgage

nonumb

I am currently a student and will be doing a masters degree next year (1 yr). I will be moving to another city (my home city) and need a place to live. My dad wants to buy a property for me to live in but have my name on the mortgage as well with the eventual aim of me buying him out when I am earning enough.

I will not be earning (or will be earning very little due to only being able to do a part time job. Value of the property would be up to £150k with a 15% deposit not being a problem.

Is this possible or will they not let me be on the mortgage as I wont really be earning anything. I have not had any credit, no phone contracts, no credit cards etc nothing.

Any advice would be greatly appreciated.

Crashandburn

As long as your dad has sufficient income to cover his own mortgage and indeed this new mortgage, then you should be fine.

No issues adding your name to the mortgage/property even if you dont earn anything as long as you have a good credit profile

steveM1978

Your dads age will be in the equasion, if he is 60 then he will only be able to get a relativly short term mortgage, he could get a regulated BTL deal and let the property to you.

nonumb

I don't really have any credit score as far as I know. I have never taken anything on credit. I should probably look it up.

Payments are not really an issue as my dad is secure in that regard. He is in his 50s (early). The idea of having me on there is so I can easily buy him out and build up credit rating. The idea is that when I am earning I will take over the mortgage and pay him back some of what he has paid as and when I can.

What he really wants is the mortgage to be in my name and him pay but I'm guessing that is not really possible?

Radiantsoul

nonumb wrote: »

What he really wants is the mortgage to be in my name and him pay but I'm guessing that is not really possible?

Another option is that he acts as a guarantor and you get a mortgage in your own name. Depends on how much equity he has in his house, income levels, etc.

Thrugelmir

Radiantsoul wrote: »

Another option is that he acts as a guarantor and you get a mortgage in your own name..

The OP is a student currently.

Thrugelmir

nonumb wrote: »

He is in his 50s (early).

That could mean a relatively short mortgage term initially.

Radiantsoul

Thrugelmir wrote: »

The OP is a student currently.

Good point.
I suppose I would suggest waiting until they have found a job and seeing what they can actually afford in the way of a mortgage.

nonumb

Radiantsoul wrote: »

Good point.
I suppose I would suggest waiting until they have found a job and seeing what they can actually afford in the way of a mortgage.

Thanks guys

Ultimately the mortgage wouldnt be that high and with a high deposit and no real time schedule for me personally to pay, we want to get this sorted asap. I dont want to rent as thats just money down the drain, and my dad is in a position to support me financially (which I am eternally grateful for) so it makes sense to try and get me on the property ladder asap.

He wants me to have a house and will help me with it, with me paying as much as I can until I can afford to fully take over the mortgage. In return for this I'll be living in the house and doing as much work as possible (we are looking to buy a pretty run down house) to try and increase the final value.

My brother and sister both moved into houses which he previously had as buy to lets.