Is There A No Risk Way For Parents To Get Mortgage For Us

nndh1_2

Hi, I have just posted a thread on the forum for Bankruptcy -5 1/2 years discharged, 10% deposit but where can i get first time buyer mortgage?

Probably best you read to put you in the picture...

...My other thought is is there a way where parents can take out a mortgage but in this case my partner and I pay the actual mortgage off where my parents are not at risk. They had recently talked about buying somewhere as an investment and I had suggested the property that I love and we pay them rent to cover the mortgage payments but they have decided it's not a profitable time for them to buy. Ideally my partner and I would be looking to buy it from them in a couple of years when my bankruptcy has gone off the records (it will be 6 years in feb 2012), and enough time to build a credit rating. The risk I can see with this is that if the value of the property drops then they would make a loss as we would be unable to get a mortgage for higher than it was worth, and if it gains then they would probably want to sell to make a profit - my concern is we might not then be able to get a mortgage big enough and can't afford to buy off them and we'd be stuck in a very difficult situation. I've read something on offset family mortgages but i don't think this is the right thing. Basically we need to try and convince them that buying the property is not at their risk, but I just don't know if there is any way of doing it without them being at risk. I really don't feel comfortable asking them to be guarantors, I'm just looking for a way so they can get the mortgage for us temporarily but where they feel totally secure. No idea if it makes a difference but the property is 130k and we have a 10% deposit (are continuing to save as best we can) and an income of 30k.

beecher2

No, there's no way for it to be risk free for them, and I think it would be very unwise of them to follow your plan. Seems to make more sense to simply wait 2 years and build up your deposit without involving your parents. Won't you have to declare that you've previously been bankrupt - are you sure you could ever get a 90% mortgage with that in your history?

Thrugelmir

Basically we need to try and convince them that buying the property is not at their risk

Suggest that you don't involve other people in your speculative plans. Better to save your own deposit.

There are many complications in the plans you outlined. With as you say considerable unnecessary risk.

nndh1_2

I thought that may be the case but know very little about mortgages so thought it was worth an ask. Thanks everyone for your advice.

After 6 years as I understand it legally I do not need to disclose my bankruptcy history, so in 5 months time that will have dropped off my record. The reason for the urgency of wanting to buy now rather than wait 2 years is that we have seen somewhere very uniue which we love and according to a high st bank in just 5 months time we can get a mortgage large enough to buy it. Fingers crossed it will still be on the market I guess!