first time buyer worries

Ciderarmy1987

i understand that as you have already said that.

Have you got enough for 10% on an older house?
Remember you need another 2K for fees

Tancred

mpe1973 wrote: »

Hello everyone, has anyone had any experience of doing this:-
We have found a new build house which we would like to buy, but the deposit required is just too much at the moment. Our mortgage advisor suggested that my mother in law buy the property as a buy to let, then rent the property to us until such a time that we could afford a mortgage then buy the house ourselves. Good idea or bad idea???? What could be the potential pitfalls?. No mother in law jokes please she's a lovely woman

Are you not aware of the government scheme to help buyers of new build homes?

Fire_Fox

mpe1973 wrote: »

Hello everyone, has anyone had any experience of doing this:-
We have found a new build house which we would like to buy, but the deposit required is just too much at the moment. Our mortgage advisor suggested that my mother in law buy the property as a buy to let, then rent the property to us until such a time that we could afford a mortgage then buy the house ourselves. Good idea or bad idea???? What could be the potential pitfalls?. No mother in law jokes please she's a lovely woman

Most lenders don't like landlords letting to family, has the broker found a product that will? Why are you viewing houses you cannot afford?

You need more than a deposit, you should have three months mortgage payments set aside in case of illness, injury, redundancy or difficult pregnancy stopping you working? Is there any financial advantage in paying the three loans off early with your savings or are they all at 0%? Remember it takes time for your credit files to be updated once you settle and close the accounts.

moneyistooshorttomention

That would be a very kind offer by your mother-in-law.

Couple of questions:

- Does your hubby have any brothers/sisters or is he an only child? (As it could/probably would create tension with a sibling if they didn't receive an equivalent amount of financial help).

- Would your mil's finances be affected if either of you should lose your job? (as in would the DWP give you enough money to cover your rent payment - so there would be no risk of your mil having to cover any of the mortgage payment herself). You could obviously deal with any shortfall in rent payable by the DWP if you became unemployed and make sure it couldn't affect mil as well by moving out to another place rented out by a stranger until such time as you got back into work again and at a rent level that you knew the DWP would meet in full (that's provided, of course, that you could find a landlord that would take you on as a claimant of course). Your mil, in that scenario, would then rent this house out to a stranger until such time as you were back in work again and could move back in.

In fact, I think I've landed up talking myself out of thinking you should take this kind offer up - as I think there is such a strong chance this could impact negatively at some point on mil and/or any siblings your hubbie has.

I'd advise waiting until you can afford a house without help from your mil

mpe1973

Ok thanks for feedback folks, maybe not such a good idea after all. Thanks for all yr help x