Using part owned property as a deposit?

Crabapple1981

Hi everyone,

This is my first post here and I was hoping for a little help. I am from Ireland but live in the UK. My brother and I are part owners of a house in Ireland which was signed over to us last year by our father. It is probably worth at least Euro 150,000 (hard to know with the way things are going in Ireland). My brother lives there at present with his family but I do not get any rental income from it.

My fiance and I would like to buy a property in the UK but it's difficult to raise a deposit when also trying to pay rent. Apart from that I think we're in a good position to pay a mortgage. We've both got steady jobs.

My question is, is it possible for us to use this property as a guarantee for a deposit without actually selling my share. I know we really need to talk to our bank about this but I thought I would put some feelers out first. I'm going home for a holiday next week and I'm thinking of raising the subject with my father. I still see it as his house even though it's technically mine and my brother's! I also recently found out that my brother doesn't pay my father any rent. I'm dreading talking about it because I don't want to rock the boat but we also need to plan for the future.

So sorry for this long winded post. Thank you for reading!:TLooking forward to your replies

CLAPTON

maybe you can raise a mortgage on the house; is that what you mean?

maninthestreet

A deposit for a mortgage has to be cash.

Crabapple1981

I suppose I was wondering if a bank would waiver or accept a low deposit if I have this other property as a guarantee. Cheers for the replies! have a great weekend! :beer:

jimsmillions

I forget the technical name name for it but from what I know you cant raise or guarantee anything against a joint owned property. Simply because your Brother cant be held liable for your debt so if worst came to worst they the bank could not evict him to sell the property and reclaim their money.

I live in a joint owned property, its 25% owned by a housing association. I cant raise anything against it have looked into it in the past. The only thing I can borrow against it for is home improvements which the housing association will allow and sign into if I ask. Though that is simply because it increases the value of their 25% :T

Thrugelmir

Crabapple1981 wrote: »

I suppose I was wondering if a bank would waiver or accept a low deposit if I have this other property as a guarantee. Cheers for the replies! have a great weekend! :beer:

You need to come to an agreement with your brother as you receive your share in cash.