Mortgage advise needed please!

nic1983

Hi all,

I am after a bit of advice regarding my parents mortgage.
The recession hit us hard a few years ago and unfortunately my parents were forced to remortgage the house in order to get some quick money from the equity to help pay for bills etc.

They are now only paying interest only on their mortgage! They are both in their mid fifties so obviously this interest only mortgage is not the best way forward for them both. However, they cant afford the monthly repayments if they start a repayment mortgage. At the moment their mortgage payments as interest only are £350 a month, if they start repayments it equates to £1195 a month. I believe the house is worth approx £250,000 and i believe the mortgage amount due is £150,000.

I currently live at home and i was thinking that maybe it might be a good idea for me to take on the mortgage and put it in my name? However, i am really unsure about a) how we go about doing this b) if i even can do this without putting down a deposit c) what this would mean going forward.

My mum has also just been made redundant from her job, her wages were used for bills and the mortgage as my Dad works as a builder so his income is not always guaranteed on a monthly basis.

I currently don't have any debts and i do have an amount of money in savings that i put aside each month (at the moment it stands at £7000).

Any advice would be greatly appreciated.

Thank you.

bigadaj

You could probably be added to the mortgage but would then be jointly liable for it. The option of interest only is being withdrawn by many lenders so your parents need to consider how the debt will be repaid, which could mean selling up and downsizing at some point.

You would have to be earning probably above forty grand to look at taking on the mortgage on your own.

ACG

You need to think about this...
It all sounds good now, but what happens if you get a partner/have kids? Will you want your parents there? Will your parents want to be there?

I put my name down on my mums mortgage, it meant i couldnt then get my own mortgage it basically held me back by around 3-4 years. I dont mind because its my mum, but in reality i would be a hell of a lot better of had i not done it, it was a bit frustrating.

Just a thought anyway. The obvious thing here (to me anyway) is your parents selling up and downsizing or downgrading or you paying more rent.
they can remain on interest only and make overpayments - even if its not to the degree of £1100 a month, obviously it will take longer to clear the mortgage but at least its a dent, that will only work if its affordable which doesnt sound the case at the minute.

getmore4less

Loads of issues if you go in with them.

long term they can't afford this house without an increase in income.

How much rent are you paying?