Advice Please

hopefulshell07

Hello All
I live with my mother and she has an endowment mortgage which it is not going to pay off the mortgage - surprise surprise. She tried to claim but was told no claim to answer to.

I need to take out a mortgage to cover the existing mortgage (as because of her age she can't remortgage) and to pay for some repairs. My salary will be enough to get enough money, but I am not sure where to go to ask about the mortgage and I don't know if I will need a deposit. I am looking at borrowing around £50,000 and the house is worth about £175, 000. I have no clue really as to what I need to do as I have never had a mortgage etc of my own. Any help would be greatly appreciated.

jackieblack

You cannot take out a mortgage on a house you don't own.

ACG

As above really, its not as simple as you are probably thinking.

your mum owns the property, you can not secure a loan against a property you do not own.

You would have to either buy the property from her (theoretically you could buy it for its true worth but have your mother gift you £125k deposit - which is effectively the equity). However the options available would come down to the finer details and potentially whether you have any siblings etc.

Can i suggest you and your mum and any siblings go and speak to a broker as there could be a few ways of doing this, or none at all depending on the circumstances.

hopefulshell07

ACG wrote: »

As above really, its not as simple as you are probably thinking.

your mum owns the property, you can not secure a loan against a property you do not own.

You would have to either buy the property from her (theoretically you could buy it for its true worth but have your mother gift you £125k deposit - which is effectively the equity). However the options available would come down to the finer details and potentially whether you have any siblings etc.

Can i suggest you and your mum and any siblings go and speak to a broker as there could be a few ways of doing this, or none at all depending on the circumstances.

Thank you for your advice. A few questions to help me please:
I will be buying the house - (siblings are a non issue) from her so can I buy it for the cost of the mortgage?
Does she have to sell it to me for the market value?
Is it better to see a mortgage broker rather than just my bank?
Many Thanks

GMS

Your Mum gifting the deposit and remaining in the property post completion will be an issue.

This creates problems in the event of a lender needing to repossess.

Before you do anything ensure the lender will accept the scenario.

Alternatively engage a broker to do it for you.