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Help son buy a flat
Crossy
Posts: 226 Forumite
We are in a position where we have no mortgage on our house and would like to help our son buy a flat.
His is looking around the £135k mark, so I naively though he would need a 10% deposit, seems that it is more like a 20% deposit that is needed.
Would it be better for us to remortgage our house and buy the flat outright and then DS pay us the mortgate each month?
Or is there another alternative?
Thanks for any advice given
His is looking around the £135k mark, so I naively though he would need a 10% deposit, seems that it is more like a 20% deposit that is needed.
Would it be better for us to remortgage our house and buy the flat outright and then DS pay us the mortgate each month?
Or is there another alternative?
Thanks for any advice given
0
Comments
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Right, its another one!
I only got educated last night on a thread with what OH and BH stand for and learn that DD was for something daughter which I have forgotten, so assuming DS is dearest son or darling son or something else when he is naughty?
On topic, there is no reason why he cannot get a 10% deposit so long as the flat is not new build and his credit rating and income stack up...
It will probably cheaper to raise on your property but I do not think better in terms of independence, clarity and responsiblility. Additionally he will be younger and will be allowed a longer repayment term than what you would be able to achieve.
How much does he earn?I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, 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.0 -
He earns £34k -and he should have managed to save some money himself for a deposit - but that's another story, this is not just a wish to see him settled, but a more selfish one that we want our house to ourselves:o
He could afford to pay mortgage on around £115k no problem0 -
Then with a minimum or no unsecured credit commitments, this should be a doddle.
Maybe he has approached the wrong lenders..?
Where has he been?
I have got much harder cases than this (on the face of it) through, so are you sure he has been totally honest on credit commitments and credit history...?I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, 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.0 -
He is always in his overdraft, and he has around 5k owing to credit card to be honest he has not applied yet, but hope that will not be a problem.
we are looking at some flats at the weekend to get some idea0 -
No need to buy it outright, raise deposit on yours.The J is a Financial Advisor-This site doesn't check anyone's status and as such any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Always seek professional advice.0
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He will be fine on 90% I would think..
As stated cheaper to do on yours, although probably not most suitable..
Good luckI am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, 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.0 -
I think if you are remortgaging your place to get to 10% you may as well go to 15-20% so he can get a better rate.
Just make sure he pays you back
...and update your willThe J is a Financial Advisor-This site doesn't check anyone's status and as such any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Always seek professional advice.0
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