mortgage advice

lukeyb83

Hello all,

need some advice regarding a new mortgage. i have recently moved into a rented property where i have been offered a very good offer to purchase it. the problem is i am the only one working in my household as my wife is full time mum so getting a mortgage for the property is very difficult on my one salary.

i did wonder if i could purchase the property with my father-in-law (owns his house mortgage free but is 61) either as part owner or guarentor?! but new to all this so dpnt know if thats possible?

any suggestions?

Dave_Ham

Yes it is possible but not with all lenders, furthermore your repayment term is likely to be lower and therefore higher monthly cost.

How much do you earn and how much are you looking to borrow?

lukeyb83

Thanks for the reply

i earn 30k prob looking to borrow £230k

Dave_Ham

No worries, as you have recognised you are a way off affordability and assume you have no other income (benefits etc.) that you could include.

Father in law could be used, although repayment term will mean hefty payments and he will additionally need to be earning an above average salary.

lukeyb83

the only income the wife has is the basic tax credits & the £20 for littlen!

JimmyTheWig

Could FIL mortgage his own home (that he currently owns outright) and release equity for the new place?
Then could OP get a mortgage just in their own name (or joint names with wife) using just their salary for the rest of the money.

Obviously FIL's mortgage will be on a short term but at least that would only be half the mortgage.

Dave_Ham

Potentially the tax credits could be included depending upon the detail, amounts etc.

Jimmy makes a valid suggestion, although emotions come into this sort of decision and therefore may not be possible but absolutely worthwhile asking the question.

ethank

Can you afford mortgage payments of £1000 per month upwards plus outgoings?

Can FIL afford to subsidise you - paying part of it?