Mortgage Criteria

jaimai_2

I dont usually post, so please be lenient with me. I have a theoretical question. We have £22,000 a year in income a deposit of approx £45,000 and would like to buy a property for approx £200,000 before you shout NO NO NO I will explain the reason, we have a set of elderley parents that could move into the annex of this house and pay us for all outgoings inc contributing to the mortage, which we would like to hopefully overpay on. Can you get a mortgage on a house like this and factor in the parents retirement income to cover the borrowing criteria, and is age important as they are in their eighties, hence the need for an annexe so we can help. I hope someone can give an idea of mortgage guidelines and whether this is possible, otherwise we will have to rethink something else. Thanks very much.

The_J

Unfortunately this is not going to be possible. If your parents die then you still have to pay the mortgage but you no longer have their income.

At most, and on the very basic information you have given, I think a purchase price of 150k would be the maximum but I would advise speaking to an IFA.

ACG

The honest answer is not a chance.
The J has summed it up really, when your parents income goes your then left with a mortgage to pay of that amount. Admittedly your parents could live for the next 15 years or 1 day but lenders wont take the risk.

I think a mortgage of £150k is stretching it a little, especially if you have 2 dependents plus any children. I would say at best closer to £135k maybe £140k at a push.

Im presuming your parents dont have a property where you can use the sale of that as equity for the new property?

jaimai_2

No parents dont have a property. The idea was that when the time of demise comes, we could let the annex out for rental, and while they are still here, paying off as much as possible. I know you can be penalised for this so would either pay off or save the money and do it in stages that would be viable. Thanks for your helpful replies, it will save me trawling round on a non mission.