Gearing

Waterlily_3

I've been thinking about releasing some equity in my house, and having just read one of the website's mortgage guides, I've got a few questions.
My house is valued at approx 175,000, my mortgage stands at 41,000. How much would I be able to borrow to help my daughters get on to the property market? I was thinking initially of buying in my name and for the girls to pay rent to cover the mortgage. The property would eventually become theirs. Is that feasible? Thanks

UK007BullDog

Yes it is but to give you proper help can you tell us:

Your age
Your gross income
Any other loans or CC's

How old are the daughters?
Their incomes?

Waterlily_3

Hi UK007Bulldog
My age 49
Gross income 19970
No loans
Daughters 24 and 26
Eldest earns 12000
Not had reply from youngest yet, possibly similar amount.

herbiesjp

What house prices are you looking at to purchase with your daughters?

Waterlily_3

Hi herbiesjp,
Price for a flat in my area is approx 130000. If we can't afford that will have to look in other areas.

herbiesjp

YOu could re-mortgage up to 4 times your income or more.

However whichever amount you settle for, you would need to make sure that it is affordable to you. As the mortgage is in your name on your property, you are the one liable for it.

You can then give those funds to your daughters to cover a deposit and fees maybe


Haggle over house prices around the £130 k mark, as you should be able to get them to below stand duty level.

Your two daughters could then get a mortgage togther for the balance of the property prices need (less the deposit you have raised)

If you go as a guarantor on a mortgage, you can be liable for CGT further down the line potentially

HTH

UK007BullDog

Going by your income you could borrow around £60K minus your mortgage leaving you £20K-ish. My calculations go by 3x income. There are lenders willing to go 4 x but then your credit history should be very good. Affordability is going to be the main factor.

Your daughters income of £12K will give her around £30K

As you can see it will not fit unless you can find a place for £40K each or together maybe a place for £60K - £70K.

You need more deposit or higher wages. But then I would go with your daughters and their & your payslips and your mortgage details to a broker who might be able to rustle something up for you. Also pull a credit record of all of you to take along.

Any loans or CC's they have will be taken into account.

Sorry.

HTH