Advice requested on house buying please

liesl

Hi!

My Dad has expressed an interest in helping me and my husband get onto the property ladder. I am 25 and work full time earning £16650 per annum. My husband does not work but instead looks after our 14 month old son full time, he receives £200pcm working tax credit and £80pcm child benefit to help him. Currently we pay £450pcm rent to my great-aunt to live in her 3 bedroom semi but it has major water/heating problems that they are loath to fix.

With my one wage and 2 dependants I can only guarantee a mortgage of between £47K and £55K and we currently have £2000 savings.My Dad has suggested that we attempt to secure a mortgage to which he will make up to £100K for a property through perhaps a guarantor mortgage or that he will instead take out a mortgage for us and we pay him 'rent' to cover the mortgage payments.

I am completely overwhelmed by all of the mortgage info out there and would just appreciate anyone's views of what way is best to go with this, should we try and find a guarantor mortgage or should my Dad secure a mortgage himself?

The only other snag is that my Dad is 50 and so I am unsure if I would perhaps need to suggest joint mortgage in order to extend the years of mortgage repayment.

Thanks in advance!

kingstreet

With no deposit, you don't just need a guarantor, you also need someone to come up with a deposit for you too. Is he prepared to do that?

kingstreet

The output from the Halifax affordability calculator indicates a maximum of £33,365. I suspect you have not added your partner and your child in the affordability calculator you have done elsewhere.

hazyjo

Don't think they're really giving 'guarantor mortgages'...

If your dad buys somewhere for you, he will be a landlord. There's no 'rent' (in quotes) about it - rent in whatever form will be classed as rent. Lots of legal obligations and responsibilities.

Does your dad currently have a mortgage? How long for/what's left on it? He'd probably only get a 15 year morgage so bear that in mind with any calculations. If you wanted a joint mortage with him, it wouldn't extend his age. I took out a mortgage with my ex hubby who was 48 at the time and we could only get 17 years (I was 40 but it made no difference).

Do you have any loans/debt? Does your dad?

Jx

liesl

My Dad would be willing to help with a deposit, yes.

He does not currently have a mortgage as it has been paid off in full. He has no loans or debts currently, I only have an outstanding student loan.

Thank you for the reply regarding joint mortgage and extending age. As I said previously I will be asking a lot of what will seem to be stupid questions as I am currently a bit confused.

hazyjo

When you say 'help with a deposit' - would it be a gift or a loan (interest free or otherwise)?

Jx