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Quick question
ExcitedFTB
Posts: 10 Forumite
If I buy a house now with cash can I later take a mortgage out? parents helping us find the cash but will obviously need to repay them later on thanks in advance for any answers
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Comments
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If you intend on paying your parents back, it would be a loan you would need, not a mortgage. Logically, as far as I can see, why would you take out (and why would a bank give you) a mortgage for a property that you already own, having purchased it outright in cash?0
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lol exactly our problem this is what we couldnt work out parents have offered us the cash to buy a property as its a repossession so have to move quick they said in 6months after living at the house we can take a mortgage to repay the bit that we owe them but like you said how can we buy a house off our selves lol thinking a loan of that amount would be a harder to obtain :-/ confused thanks for replying though0
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There's nothing to stop you taking advantage of a loan from your parents to purchase the property.
There's also nothing to stop you remortgaging the unencumbered property in six months time, or more, to pay them back. I mention six months, as this is the time most lenders insist a property is in ownership before they will allow a new mortgage application to be made.
Don't forget you won't be able to borrow the whole value of the property. Some of the equity will need to be left for the lender's "buffer," like the deposit when you buy.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
Why don't your parents buy the property in question & then sell it to you a few months down the line? (providing you could get a mortgage on it that is) but I assume you have already checked out if you'd qualify for a mortgage & how much you could borrow?The bigger the bargain, the better I feel.
I should mention that there's only one of me, don't confuse me with others of the same name.0 -
Very misleading reply. Ignore.Sammie_UK1 wrote: »If you intend on paying your parents back, it would be a loan you would need, not a mortgage. Logically, as far as I can see, why would you take out (and why would a bank give you) a mortgage for a property that you already own, having purchased it outright in cash?
You can take out a mortgage later o pay your parents back (or a loan if you prefer, but either is possible, subject to normal mortgage criteria).
As for the Qs - well, OP wants to repay his parents, so that is why he might take out a mortgage later.
And banks allow people to increase the size of their mortgages at any time (again, subject to criteria) or re-mortgage, or apply for brand new mortgages.
Don't know where sammie gets his (her?) information.....0 -
2 lots of stamp duty is why not. Doing it as proposed is stamp duty just the once.Why don't your parents buy the property in question & then sell it to you a few months down the line? (providing you could get a mortgage on it that is) but I assume you have already checked out if you'd qualify for a mortgage & how much you could borrow?Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0 -
Why don't your parents buy the property in question & then sell it to you a few months down the line? (providing you could get a mortgage on it that is) but I assume you have already checked out if you'd qualify for a mortgage & how much you could borrow?
Wouldnt this route attract 2 lots of solicitors fees and possibly 2 lots of stamp duty?Be Alert..........Britain needs lerts.0
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