mortgage offer received- declare mum moving in?

PEG

Hi
My sister and i ended up getting a mortgage for my mum as she is too old to get one and repay it, we have a savings arrangement to repay her debt when she retires. We both intend on living there. my sister during the holidays and myself for the short term. however when we received the mortgage offer it said to declare anyone else moving into the property. Would this jeopardise our offer or in getting the house or if it makes no difference should i just declare it.

Hope someone can help?

Senior_Paper_Monitor

Where does she live now ?

What is 'her debt' that you are saving to pay ?

Where do you and your sister live:
1) now
2) during non holidays (for your sister)
3) after 'short' term (for you - and what is 'short term') ?

Is your mum paying anything to live in the new (presumably) property ?

Simon_gloster

Whichever lender offered this doesn't know the bigger picture?

PEG

Hi

My mum lives with me at the moment and has a savings plan that matures when she is 65 which should pay off the remaining mortgage at that point. in the meantime i will make sole payments to the mortgage company tho she will contribute in some way to running costs i'm sure. My sister lives in Norfolk and comes to my house during the hoildays and many weekends. She wanted us to get an extra bedroom so she has somewhere to stay.

the main worry is that it would be mum and i moving in after completion and would register on electoral roll and council tax purposes etc ligitmately and i would worry that the mortgage company would check.

is it ok to have someone not on the mortgage who has a terrible credit rating move in with you and not affect completion?

Why is it the lender would need to know this?

Senior_Paper_Monitor

This is a bit like pulling teeth !

Has your mum contributed to the deposit ?

Is she the one with the "terrible credit rating" (not mentioned previously) ?

Do you and/or your sister have own properties/mortgages - or do you rent and will be getting rid of rental(s) ? Is the new mortgage company aware of this ?

holly_hobby

I presume at present the mge app is just at application stage.

But put simply, yes, you need to declare anyone else aged 17 yrs or over (and who is not party to the mortgage) that will live there on completion .... which of course Mum is.

This is essentially to do with possessionary rights of the lender, and Mum once is declared as living there, she will have to sign a consent to vacate disclaimer - which essentially just means that if you and sister default on the mortgage, Mum accepts she'll have no right of residence and will have to move out on disposal of the property.

If she is contributing to the deposit, then technically she needs ie the lender will want her, to be party to the mortgage itself, given the benefical ownership rights the deposit will give her, and again how this would affect any later possession order the lender may be forced to seek - and yes her adverse may well affect the overall credit score, but may not mean an outright decline. Of course this may well be less effected, if her income (as it appears) is not reqd for affordability, which if so should also circumvent any max term issues re her age - your broker will guide and explain.

Of course you could elect to conceal 1 or both of the above, but that would be going down a very slippery road .... and is not recommended at all.

Hope this helps

Holly

Senior_Paper_Monitor

Holly as I read the original post, the offer is out.

As I think you, I and Simon suspect - there is some doubt as to whether the lender is fully aware of the background in making the offer - and therefore potentially dangerous area.