buy to let to family

tinga_2

Hello,


I have a buy to let house i rent to my family at moment. Its under a buy to let mortgage, which is expensive. But when i contacted northern rock they said that due to renting to family i could residential mortgage ?
is this correct ?

is there anyone else out there with this type of arrangement.
I am planning joint mortgage with one of my family that is currently renting the property from me. Can i just have a joint mortgage with them ? and its just a residential one ?

I have a mortgage on my own home also ?
how do i move forward as dont just want to go with northern rock is i can get a better deal elsewhere. ?

Does anyone have any advise for me ?:D

LisaT186

Most lenders allow you to buy a property for a dependant relative to live in on a residential basis. Each lender will have different criteria for how close a relative has to be and whether or not they will take the rental into account.

You can go on the mortgage with the relative, but your mortgage will be taken into consideration when working out income multiples. Basically you will be jointly and severally liable and therefore your income needs to be able to support the two. Again this can be residential. Careful with any stamp duty liability, you may want to seek legal advice as the relative may be effectively purchasing half the house if they do no have their name on the deeds at the moment.