Helping my parents

JoC2013

Hi MSE Forum-ers,

Long time reader, first time poster.

My parents now need a little financial help. They would provide an 80% deposit and I would pay the remainder through a mortgage. Deeds would be in my name.

I can afford the payments (would be 40% of my savings per month, after all commitments and discretionary spending, could boost to 33% if that made a real difference [25% max])

My questions are.
1) What product am I looking for? (its not a mortgage for my primary home)
2) How do I find out the affordability criteria?

My mortgage is at a great SVR and I don't want to negotiate (we pay the pre-SVR amount which is where some of the savings would come from)

Thanks for you ideas,
Jo C

somethingcorporate

Sounds complex so you would benefit from seeing a broker.

holly_hobby

If you are buying a property with a deposit funded by parents, with the property also to be their main residence, and you need a mge for the residue - your parents will have to be party to the mge.

This is because the "gifted" deposit is actually a gift with reservation, in that is in direct exchange for their residency in the same dwelling, and it thereby creates possessionary issues for the lender should they need to seek a future possession order (on any unresolved mge default).

There is no way round this - unless the source and basis of the deposit, and residency of parents in the property is upon request, not disclosed. (which will result in the appication being fraudulent).

Hope this helps

Holly