What mortgage do I need to part buy inherited property?

sjc1967

If I want to buy one of my siblings out in their share of an inherited house which was left to us, what type of mortgage do I need if I don't plan on living in it but another sibling does?
I've looked at BTL mortgages, would this be necessary if my sibling is not going to pay rent as he also owns a share?
Are BTL mortgages interest only or could I get repayment? What type is best, should I look for no fee, tracker, variable, fixed?

Thrugelmir

You cannot partly mortgage a property. Which may make matters more complex.

getmore4less

What that means is all the owners will need to be on the mortgage.

Conveniently this can be a residential since at least one of you will be living there.

dimbo61

Either sell the property and split the proceeds between the number of people who are named in the will.
Or one person buys out the others using the equity they have as a deposit.

holly_hobby

If the other property owner is to retain their share and remain resident, this would be a residential remortgage - its classed as a remortgage as you already hold legal title.

This means that both you and your fellow sibling (as legal owners) will need to be party to the mortgage - which means that you will both be subject to status checks ie income, commitments and credit ref agency. You will both also be fully responsible for servicing (paying) the mortgage.

There are many variables to your enquiry, too much really to give any specific guidance on here, so i would suggest (if your sibling is happy to be party to the mge with you) to speak to a whole of market broker - take a copy of your credit searches with you (callcredit, experian and equifax), and take it from there.

Of course if your fellow sibling can't or doesn't want to be party to a joint mortgage (to facilitate you purchasing the 3rd owner out), then you're in stuck - and you'll have to consider alternative methods.

Hope this helps

Holly