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Mortgage - Best idea?
joeroadley
Posts: 2 Newbie
Hello All,
I'm new so not sure if this is where I'm supposed to post.
I currently live at home with the parents but Mum says she will lend me £30000 as a deposit on a house/flat. The idea is to rent the property to cover the mortgage.
Mum wants to do it as an investment so e.g. if she has 30% of the house and when I sell the property in say 10 years she would want the 30% of the sell value. However she wants it to appear as a gift to me.
I'm currently on £17.100 but have various overtime and commission rates.
I have no financial commitments over than £300 rent and £56 insurance.
I'm not sure what else is relevant to research so any help would be amazing, thanks in advance
Is this possible to get a property on Buy to Let
I'm new so not sure if this is where I'm supposed to post.
I currently live at home with the parents but Mum says she will lend me £30000 as a deposit on a house/flat. The idea is to rent the property to cover the mortgage.
Mum wants to do it as an investment so e.g. if she has 30% of the house and when I sell the property in say 10 years she would want the 30% of the sell value. However she wants it to appear as a gift to me.
I'm currently on £17.100 but have various overtime and commission rates.
I have no financial commitments over than £300 rent and £56 insurance.
I'm not sure what else is relevant to research so any help would be amazing, thanks in advance
Is this possible to get a property on Buy to Let
0
Comments
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Your income is too low for many lenders.
Many will not do a BTL mortgage for a FTB. You are expected to own your own home, so the lender can ensure you are not buying a home for yourself and bypassing the new MMR affordability rules.
You need 25% deposit and the rent must be at least 125% of the monthly mortgage interest, assuming a rate of perhaps 6% pa.
Seek out a whole marker broker for advice on this as many lenders & products in the BTL market are broker only.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
Can your mum go on the mortgage with you?
Speak to a broker. This could either be a lot easier than you think or a lot more difficult - depending on the circumstances.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Why won't your mum just buy the property herself?0
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She is self employed, so the mortgage she can get is really small
Thank you for the replies
0 -
joeroadley wrote: »I currently live at home with the parents but Mum says she will lend me £30000 as a deposit on a house/flat. The idea is to rent the property to cover the mortgage.
Mum wants to do it as an investment so e.g. if she has 30% of the house and when I sell the property in say 10 years she would want the 30% of the sell value. However she wants it to appear as a gift to me.
Even if the obstacles mentioned by kingstreet did not exist, be aware that concealing a loan as a gifted deposit is mortgage fraud.0
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