Small mortgage to help retired parent buy bungalow

jimmysmum

Hi all. Hope this is the right place to post.

My dad is retired and owns his home outright. He has seen a bungalow he'd like to buy, which is in the region of £30k more than he has available in cash. His health is beginning to dictate such a move.

I am wondering if it might be possible to take a small mortgage to help him? I'd see it as a long-term personal investment and don't feel the repayments would be a problem. With the banks appearing 'closed for business', I am just not sure if they'd be likely to lend, nor whether I'd be allowed to mortgage a property I didn't own outright. Would we need to put the bungalow into my name, for example?

I currently have a joint mortgage with husband too. We haven't mortgaged to our max limit.

Dad would be putting down a deposit in the region of 85%.

He is under the IHT threshold in terms of assets.

I'd really appreciate people's thoughts on pros and cons in any event, as i am sure there will be factors I've not thought of.

Dad has a reasonable pension income (retired last year). This will increase when he gets his state pension in two years time. Is it possible he might be able to get a mortgage himself?

Thanks if you can help.

Conrad

Well it can definitely be done but it is messy and takes great care and skill to ensure all parties aren't exposed to added risk.

Your best bet would be a competent experienced small broker (bucket shops and call centres will mess this case up / wont have a clue).

Be careful about buildings insurance. The policy risk must reflect the circumstances.

Good luck

jimmysmum

Many thanks Conrad. Have you any idea whether he could get a 5-10 year mortgage himself for £30k? Income is about £1500 PCM after tax, due to rise in 2 years by about £500pcm. He would keep some savings too.