Mum and two sons wanting to buy a home.

ckember

Hi, I feel this is very complicated but hope somebody out there maybe able to point me in the direction.

I currently live with my mum and am in partnership with her on her farm (although I am the main 'working' partner) The farm and house are mortgage free.

We have seen a house we would like to buy for me to live in but as I only have a few years accounts and due to large setup costs have not yet shown a profit, know I don't stand much chance of a mortgage.

Mum can put in around half the value as a deposit and I can maybe add another 15 leaving a mortgage around 40,000. Leaving quite small repayments around £250/month.

My question is, is there anyway it would possible to get a mortgage, me live in it with girlfriend and pay rent to cover the repayments, but for it ultimatley to end up in my brothers name so he has something to inheret without splitting up the farm on mums death which is my business.

If it helps, I'm 30, Mum 71, brother 51.

Sorry for it being so longwinded it seemed straightforward in my head!!

Senior_Paper_Monitor

Is the brother earning ?

Dave_Ham

Given the deposit and relative risk to the bank, I would suggest there will be a solution.

It is probably one of those times when it would be good to engage a broker and look for the exact solutions.

All possible though, depending upon credit scores of course.

All the best

ckember

Yes, my brother is in full time employment. Lives in his partners house but I guess would be hesitant to get a mortgage in his own name as they are looking to move to a bigger property together.

Conrad

Yes it is complex - it needs very careful presenting to a lender. Find a small local broker - not some internet call centre type place.

You should get a very low interest rate on this one.

I'm not sure adding Mum is sensible - what is her age, what will happen to her current place? Lenders don't like complications such as Mum having 2 main homes as there are buildings insurance implications if for example she claims she will let the existing place out in order to satisfy lenders need for her to APPARANTLY live in the new one.

All the best.

Conrad

BTW - you don't need a buy to let mortgage. They often have poor LONG TERM rates and high fees.

Senior_Paper_Monitor

In that case (as Messrs Ham and Conrad have already said) should be doable.

Also as indicated proabley best processed vai a broker, who should also advise on best structure to protect all involved.

I would also agree with Conrad in probably best to keep Mum out of mortage (but protect with legal structure).

Conrad

Senior_Paper_Monitor wrote: »

I would also agree with Conrad in probably best to keep Mum out of mortage (but protect with lega structure).

Yes but it's often a compromise as clients want a legal structure to afford them a set of rights that are at odds with lenders aims. Sometimes people have to use to sets of independant Solicitors to find a compromise solution but in the end the lenders rights will trump all else if push came to shove in a future legal battel between siblings / parents.