Helping my son with is right to buy property

coralpink · 10 February 2014 at 6:31PM

Hi,

My son wants to buy his council property, and has been offered it at a very good price. He needs 40K but cannot get a loan as his credit is bad. I would like to get a loan out on his behalf, with him paying me back over 5 years. I have asked my bank, who I have been with for over 35 years, had two mortgages with and never had any debts. I own my own house which is now mortgage free and I have a rental property, with a very small mortgage on it. I also work 25 hours a week for large Multi National company, and have done for 13 years. But they have turned me down on the strength of a 6K loan on an interest free credit card tht I am paying off in full over 12 months.:shocked:

Is the only way I can get a loan of this size, by releasing equity in my house ? I have looked into this and am not keen on the options, as most of these have large interest rates and I dont want the equity in my house to be devalued, as I may want to downsize when I get older but to a more expensive area to be nearer my children. Can anyone give me independant leads as to the best options for this type of loan, if there is such a loan on the market.

grateful for any advice.

Thanks

Wh05apk · 10 February 2014 at 7:03PM

I doubt the credit card is the reason, what is your income, age and property values, provided you have the income, then you should be able to remortgage your current residence, if not then you should be able to raise it against the BTL, provided there is equity and rental income is sufficient.