Mortgage/Equity Release advice in Mother's name...

Lilyfairy

Hi,

My mother owns her house outright and is quite keen for us to buy a local property that is need of renovation, renovate it and sell it on/rent it at a profit. I have looked into equity release products with her recently and I really would not feel comfortable if she entered into an equity release plan. As she is retired, is there any way that I could take out some kind of mortgage in our joint names, with my Mum's mortgage free house as security/collateral?

holly_hobby

Only if you are on the mge deeds, and your income is sufficient to service the loan (and any other commitments you have inc your own mge ) - if so, yes this is a viable option.

Interest only - less than 75% in todays market, proof of repayment vehicle may be reqd depending on the actual LTV.

May be further complicated as you have an unencumbered (mge free) property - not all lenders will accept unencumbered remortgage business.

Speak to a whole of market broker with your proposals & tax implications (inc those applicable to investment property), check if he has a fee for gen advice.

Hope this helps

Holly

Lilyfairy

holly_hobby wrote: »

Only if you are on the mge deeds, and your income is sufficient to service the loan (and any other commitments you have inc your own mge ) - if so, yes this is a viable option.

Thanks very much. One of the reasons that she's had her eye on this house is so that she can help me out of my debt situation so it sounds like it won't be a viable option. As of yet, I do not have any adverse credit per se but from what you've said, affordability might be tight. I've just found some broker numbers on here so I'll give them a call. Thanks for your advice.