Mortgage to buy property for Mum to live in

dt2703

My mum has lived abroad for several years and is going to move back to the UK. She's a pensioner and has cleared her mortgage, but has not come away with very much money from the sale of the house. She does not want, and really is not in a position, to get another mortgage.

We've worked out she can afford about £350 per month on rent from her pension, so I'd ideally like to get a mortgage with repayments around this amount, so that I can buy her a small 1 bed flat for around £60,000/70,000 to live in, and for her to give me the money each month to cover the repayments on the mortage.

I currently rent, have no mortgage myself, nor have I ever had. I earn just under £40,000 a year, so I can comfortably afford to cover rate increases, but my question is how would lenders view this situation?

It's not really a buy-to-let, there wont be a contract or anything, im not going to make a profit from my Mum, I just want to give her a secure roof over her head, and use the place as an investment. I guess we should look at it as being my flat, that she's staying in. Would they take her 350 p/m into the equation (which basically covers the repayments) or would they look soley at my income as I am the one taking out the mortgage? Or would they insist on it being buy-to-let?


To make the situation a bit more complex, a lot my money is currently tied up and I don't have much savings. I can put down around a 10% deposit, and thats basically the total of the cash she's come away from the sale of the house in spain with, but thats all.. currently.

I've been looking at a 40 year mortgage to reduce the monthly repayments as much as possible in the initial stages, but my salary has increased by almost £20,000 in the past 6 years and is expected to double in the next 5 or 6 years, putting me in the £80,000 bracket. Right now money is tight for me as i'm trying to get debt free, but in time I will have increasingly larger sums of available cash with which I hope to not only reduce the length of the mortgage, but increase the repayments.
I have several fairly large debts which I am clearing down (student loan, credit cards, personal loan, dad's funeral) and in the near future these will dissapear also.

So it would seem to make sense to take what I can get now (a rubbish rate on a long term) and remortgage as my financial situation improves.

Added to this is the fact that Mum's probably not going to be around for another 40 years (she's in her late sixties now), so when the time comes I will either sell the flat and clear the outstanding mortgage, or rent it out for a profit.

Does this sound like a good idea or am I being naive. I'm far from being an expert on mortgage, so any advice or comments would be gratefully received.