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Morgage Advice and Borrowing

Me and my husband are currently looking to buy my parents house and I am looking for some advice. We have only to pay my parents what is left of there morgage which is £21000 (so a very low morgage) but does anyone know if we will beable to borrow say £10000 for home improvements on top of the £21000 or will the effect our chance of getting a morgage? We have contacted the bank and she said they will loan us up to £75000 assuming all credit checks come back fine.

Comments

  • xyellowx
    xyellowx Posts: 570 Forumite
    you need legal advice first
    deprivation of assets!
  • ComparetheMortgageMarket
    ComparetheMortgageMarket Posts: 8 Forumite
    edited 8 August 2011 at 3:42PM
    This is not to be classed as advice - You would be purchasing your parents house for around the market value, raising a mortgage of £31k and having the remaining equity gifted to you by your parents as a family gifted deposit. Its just a sale to a family member and the majority of lenders will accept this gift as full deposit and it can be unlimited. You do not need to split the mortgage as £21k to repay parents and £10k for home improvements. You are not taking their mortgage over, you are simply purchasing a house.
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