Buying a second house

rhilee581

Hi

any advice/experience gratefully received.

I own a house with my brother. we have a repayment mortgage and are currently about 60% LTV (not sure if that is relevant). I no longer live in the property and rent my room out to a friend. We also have another lodger. The money we get from them covers approximately 70% of the monthly outgoings. We do not have tenancy agreements with either of them (they are both close friends).

I now live with my boyfriend in his house. He is approximately 57% LTV on a repayment mortgage.

His parents live on the other side of the country and now want to move back to where we are. They cannot sell their bungalow - it's been on the market for 6 months and they have already dropped the price to £139k from £159K. They have seen a bungalow they like here and it is £127K. Time is of the essence to get them back down here so my boyfriend and I are going to see if there is anyway we could get a mortgage to buy the bungalow down here for them until they can sell theirs. We would have to pay the deposit for them and be able to cover the mortgage until they are in a position to buy it.

Does anyone have any similar experience of how a bank might approach it. We have no credit history together. Our combined income is £64k.

thanks!

DVardysShadow

Just a minimal thought here. You look to be overexposed to shared property commitments where you only have a minority voice. You need to be sure that you can call the shots on something in your own name before going much further.

rhilee581

Thanks, I do take your point. I don't want to extricate myself from the house with my brother-it's a good investment and doesn't cost me anything while I have someone renting my room. Even if he goes the most I would have to find would be £275 a month. The medium term plan with my boyfriend is to buy a house together but if we could help out his parents in the short term it would be good. It's a last resort but we just want to know if it's even an option.

As I said though, I understand your point and thanks.

CLAPTON

if time is of the essense then surely the obvious answer is to reduce the price of their property so it will sell quickly

DVardysShadow

As a last resort, what I would suggest is that you underwrite their purchase of the new place by buying the old place. That way, you control sale of the old place and you are not beholden to them while they mess around trying to get a ridiculous price for the old place, all the while living very comfortably thank you very much in the house you buy.

Better still, I suggest that your BF does the hero bit for his parents and you only get involved by taking over a 50% share of the house where you live together.

Don't forget that if your bf does underwrite his parents by buying one of the properties, it may become effectively unmortgagable for 6 months or so.