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Mortgage options

Will try and keep this short...!

Currently live with parents who own the house mortgage-free, value approx £180K We'd like to be able to move over the next few years, and potentially we'd like to find another £50K to put in with that.

They're both approaching 70 so wouldn't get a mortgage now (even though they could afford it). I'm self-employed on a reasonably low income, but could potentially raise the £50K as a mortgage.

Does anyone know of any clever way we could make this work? I don't know whether it would be possible in some way to have a share in the property, somehow taking a mortgage out on that share? It's our circumstances which are the problem as none of them really fit in with mortgage lending, but I'm sure there might be a roundabout way around it!

Comments

  • kingstreet
    kingstreet Posts: 39,023 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    You can't have parties to the ownership not named on the mortgage and you can't mortgage a part of a property.
    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.
  • cadenza82
    cadenza82 Posts: 112 Forumite
    kingstreet wrote: »
    You can't have parties to the ownership not named on the mortgage and you can't mortgage a part of a property.
    So on that basis, there'd be no way round it at all?
  • kingstreet
    kingstreet Posts: 39,023 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Only to exclude your parents from ownership, but that robs them of any security if you are ever insolvent and creates the possibility of a deprivation of assets claim if either of them ever needed council-funded care.
    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.
  • Dave_Ham
    Dave_Ham Posts: 6,045 Forumite
    Tenth Anniversary Combo Breaker
    Not necessarily, you will just need to find a lender that will lend to all 3 of you on a residential basis so you are on the deeds and mortgage as all 3.

    They are out there.

    What Kingstreet was saying is that you cannot just get the mortgage in your sole name, but all 3 split on the deeds.
    I am a Mortgage Broker
    You should note that this site doesn't check my status as a Mortgage Broker, 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.
  • kingstreet
    kingstreet Posts: 39,023 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    I jumped ahead and saw the short-term to a likely expiry age making the monthly cost prohibitively expensive.

    If your parents have sufficient income, they could consider a lifetime mortgage, which you could then pay back.
    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.
  • JimmyTheWig
    JimmyTheWig Posts: 12,199 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Could they not get a mortgage in all three names but affordability based on the OP's income alone?

    E.g. my wife and I have a joint mortgage. We use my salary for the affordability and ignore her very small self-employed earnings. I don't see why that should be affected if my wife was to retire?
  • Dave_Ham
    Dave_Ham Posts: 6,045 Forumite
    Tenth Anniversary Combo Breaker
    It can be - although would limit OP to a handful of lenders that operate such a scheme.
    I am a Mortgage Broker
    You should note that this site doesn't check my status as a Mortgage Broker, 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.
  • kingstreet
    kingstreet Posts: 39,023 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Could they not get a mortgage in all three names but affordability based on the OP's income alone?

    E.g. my wife and I have a joint mortgage. We use my salary for the affordability and ignore her very small self-employed earnings. I don't see why that should be affected if my wife was to retire?
    A lender may lend to all three, but if it sets its maximum expiry age at, say, 75, the mortgage term is going to make the payments prohibitively expensive.
    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.
  • cadenza82
    cadenza82 Posts: 112 Forumite
    Thanks for your suggestions.

    When we moved a few years ago we had a lot of trouble because all the lenders we looked at for a two or three-way mortgage took Mum's age/income first (she's older) so they wouldn't consider it. In the end, we had to do it in Dad's name only, so in fact the mortgage and deeds were/are all in his name. The mortgage was to be paid off by his 75th birthday, but actually we used his retirement lump sum to pay the lot off.

    I haven't come across lifetime mortgages; I wonder how that might work?
  • kingstreet
    kingstreet Posts: 39,023 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Lifetime mortgages include products like equity release, so they require advice and the intermediary giving the advice has to have extended permissions to do so.

    Your best bet would be a consultation with an Independent Financial Adviser, or broker with those extended permissions.
    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.
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