mortgage question

dazzadub

ill keep it simple. my partners mum is looking to buy a house

she is 55, my partner is 21

they were thinking of doing a joint mortgage and have about 30k to lay down as deposit.

is this possible to do, will they even get a mortgage.


also if they could what sort of mortgage could they get based on there deposit and income.

jointly they earn approx 25k a year.


ideas please asap as we are starting to look more seriously


thanks

dazzadub

please, someone must have a idea

hcb42

why buy a house together? there are calculators on here which will give an indication of borrowings, but what is the exit strategy when your partner wants her own home.

dazzadub

Not sure really. Just trying to look at ways to keep the mum housed and to ensure her money isn't wasted. She wanted to make sure her daughter had something when she passes away.

I know its not the greatest way of doing it, but we want our own home and we don't have 30-40k deposit where her mum does and she wants to do this.

Main reason behind asking is to see if a 55yr old.could get a mortgage with her daughter

charleyroo

when is the mother due to retire? will she have a pension income? as a guide I've obtained a DIP for my dad who is 57, for a 10 year mortgage 50% LTV, so yes it is possible but the banks will probably ask the above.

what if they fall out?

i don't know the answer to this myself, but what if the mother has to go into a home? will you have to sell the house?

opinions4u

dazzadub wrote: »

Not sure really. Just trying to look at ways to keep the mum housed and to ensure her money isn't wasted. She wanted to make sure her daughter had something when she passes away.

So why is borrowing money now going to achieve this?

Surely a savings plan would be a better bet.

I know its not the greatest way of doing it, but we want our own home and we don't have 30-40k deposit where her mum does and she wants to do this.

It sounds like it will be her Mum's home. Committing herself to debt means the chances of you owning your own home as a couple are significantly less.

Main reason behind asking is to see if a 55yr old.could get a mortgage with her daughter

It's possible. But I don't see the benefits for the daughter.

dazzadub

Yes she has a pension plan. It's a end salary plan with local government.

It would be placed in her will that if anything happens to her that the house be passed to her daughter. And her insurance she currently has would clear any mortgage.

What is she going to do if she puts money into saving. She would still be homeless. My current home isn't big enough to house her. And private rent is a waste of money.

This is only real option.

herbiesjp

Your partner getting a mortgage with her mother is possible.

However the amount, and term etc will all depend on the exact details.

Whether or not it is a good idea is a different discussion.

You will need to be disclosed on the application as living there.

dazzadub

No probs me being listed as living there.

Are fiqures are mum 8500 a year. My partner is 1500-1900 a month.

And 30-45k deposit.

sirloin

Just for those people who are interested in obtaining a mortgage. I'm 77 and my wife is 72 and we've just entered into a Lifetime Mortgage and borrowed £120k (our net joint income is less than £20k p.ann.) to buy a house. We did this before we sold our existing one; which we will eventually do, sometime ?
We found a decent IFA and it all went swimmingly well.
Who was the most surprised ?
Me ! as originally I never thought anyone would give me a mortgage at my age !
I know ! I know ! my circumstances may be a lot different to most, but for anyone like me then just to let 'em know what can be done.

RenovationMan

dazzadub wrote: »

we want our own home and we don't have 30-40k deposit where her mum does and she wants to do this.

This is do-able from a financial standpoint, but I think you all need to think it through and ask yourself some serious questions...

Do you really want to set up home with your girlfriend (perhaps wife by then) and her Mum?

What happens if you decide to have kids, would 'granny' really want to live in a house full of screaming children at her age?

Would you have enough room with children and would you need to all move to a larger house together.

How do you feel about cozying up on the sofa with your gf with Mum sat in the armchair?

How would you feel about paying bills, mortgage, doing DIY and such and not having the house in your name or any financial protection.

What if her mum meets someone and wants to move in with them (55 is not that old these days).

While it's laudable for you to want to put a roof over her mum's head, you also have your own life and it's not as though her mum is in need of care. You might look at this option when you've settled down and your kids are leaving home rather than at the start of your relationship.

While this might seem to be an easy route onto the housing ladder, it could very easily become a very stressful and difficult one.