We'd like to remind Forumites to please avoid political debate on the Forum. This is to keep it a safe and useful space for MoneySaving discussions. Threads that are - or become - political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
Additional lending to help buy a second property?
Amy56
Posts: 58 Forumite
Hi all,
A bungalow a few doors up from my house has come up for sale and my mum & stepfather who currently live approx 30 mins away from me are interested in buying it to move nearer to us.
They are now retired and as they get older, I am keen that they are nearer to us, so that we can look after them more easily.
Unfortunately we live in a more expensive town than where they are, and the property we are looking at, whilst no bigger than their current small home, is approx £30,000 more than their existing one.
We do not have the savings to pay this for them, but wondered whether it is possible to add the additional sum to our mortgage? We are currently with HSBC (have only been with them for about 12mths, with a current LTV of 60% and I believe we would be OK with regards to income).
So my question is really, will lenders these days allow us to take out additional borrowing to help our parents buy this house? Or is this now an area where they are less inclined to help these days?
I haven't approached the HSBC yet as this has come out of the blue tonight, and I can't find anything on their website that indicates either way.
many thanks for any help:)
A bungalow a few doors up from my house has come up for sale and my mum & stepfather who currently live approx 30 mins away from me are interested in buying it to move nearer to us.
They are now retired and as they get older, I am keen that they are nearer to us, so that we can look after them more easily.
Unfortunately we live in a more expensive town than where they are, and the property we are looking at, whilst no bigger than their current small home, is approx £30,000 more than their existing one.
We do not have the savings to pay this for them, but wondered whether it is possible to add the additional sum to our mortgage? We are currently with HSBC (have only been with them for about 12mths, with a current LTV of 60% and I believe we would be OK with regards to income).
So my question is really, will lenders these days allow us to take out additional borrowing to help our parents buy this house? Or is this now an area where they are less inclined to help these days?
I haven't approached the HSBC yet as this has come out of the blue tonight, and I can't find anything on their website that indicates either way.
many thanks for any help:)
0
Comments
-
Most lenders would consider additional borrowing for such a purpose.
Can't speak for HSBC in particular. As this means an increase in your loan to value, it's possible your existing mortgage may be rated more highly.
You told us the LTV now, but don't indicate what it will be with £30k stuck on top. If it goes above 75%, a rate rise may occur.
The only way you'll know for definite is to ask the specific lender, I'm afraid.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
Hi all,
So my question is really, will lenders these days allow us to take out additional borrowing to help our parents buy this house? Or is this now an area where they are less inclined to help these days?
Yes, but be very careful when it comes to mentioning a home for a relative to occupy as this can cause issues. To be frank it might be better to just frame it as an investment property.0
This discussion has been closed.
Categories
- All Categories
- 347.2K Banking & Borrowing
- 251.6K Reduce Debt & Boost Income
- 451.8K Spending & Discounts
- 239.4K Work, Benefits & Business
- 615.3K Mortgages, Homes & Bills
- 175.1K Life & Family
- 252.7K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 15.1K Coronavirus Support Boards