New mortgage - how would this work?

coffin137

Hello

I have a query please I'd like some basic advice on. I will seek proper financial guidance if and when required

Scenario:

* My mother owns a home valued at £250k. She has £70k equity

* I have £60k cash

* My sister owns a home valued at £280k. She has £120k equity. She earns £50k a year

My mother wishes to sell her house, relocate to a completely different area of the country and downsize to a property valued at £150k. I wish to live there also. Our combined deposit through the sale of my mother's house equates to £130k

As I understand it, we're unable to take out an immediate mortgage, even for a 'nominal' figure of £20k, as we would not be immediately employed. We will both however seek work as soon as we've moved to the area.

We could rent, secure jobs and then buy, but even that may be difficult with no immediate proof of income.

My sister is willing to help however necessary, even if that includes taking the mortgage for the £20k deficit herself. However she herself would not be permanently resident in the new property.

Surely I can't be the first with this type of situation. Is it viable to buy in this way and if so what's the mechanics to make this work? If it's not viable please explain why

Thank you

Foxy-Stoat_3

Some options:

You could buy a house outright for £130,000,
Rent somewhere for 6 months and negotiate a £150,000 house down by 5-7%, due to you being cash buyers with no chain.
Take out a credit card or two and do a low rate transfer to your bank account for £10,000 - £15,000 say.
Ask you sister for a £15,000-£20,000 loan (very risky asking for family money/loan but an option).
Take out a 15% LTV with your sister being a guarantee, you having a 85% deposit should help.

Speak to a broker.