Mortgage and ownership

whacks

Hi my wife and I are looking at buying a house. As I am a student(starting pgce this September) my Bursary although quite large and tax free wont be taken into consideration.


So we will apply in her name only. We have talked to a advisor and one of the houses is within her range with a 25% deposit(gifted to us by in laws). This is good news and if its the only option available we are happy to do this.


However we saw a more expensive house that she could not get on her income alone. One of the options from chats with the in laws is they might be willing to buy part of the house with her until I can get a job and take it on myself. The guy on the phone did not sound to convinced by this.


Is a purchase with her and her dad/mum viable or is it likely to be turned down. Not sure how they would do it, i.e. either pay cash or mortgage their half(it could be either and probably what is best for them financially).


Thanks

Funny_old_game

As long they use the same lender and apply together subject to income and ages and all other criteria it may be possible.


The advisor was right to sound concerned.

Some lenders take bursaries into account so get a broker to search it.

whacks

That's interesting thank you will have to loo into speaking to a broker then.


Thanks

Yorkie1

whacks wrote: »

However we saw a more expensive house that she could not get on her income alone. One of the options from chats with the in laws is they might be willing to buy part of the house with her until I can get a job and take it on myself. The guy on the phone did not sound to convinced by this.


Is a purchase with her and her dad/mum viable or is it likely to be turned down. Not sure how they would do it, i.e. either pay cash or mortgage their half(it could be either and probably what is best for them financially).


Thanks

Just to clarify the highlighted part.

Your wife and her parent(s) would jointly own all of the property and be jointly on the mortgage; they would not legally each own part of the house, and they would all be individually liable for all of the mortgage if the others didn't pay towards it.

whacks

Ahh I see, that might be what made him dislike the idea as they are both 60. However they could afford to buy it out right easily if they had to, would that be a balance to age?

kidmugsy

whacks wrote: »

However we saw a more expensive house that she could not get on her income alone. One of the options from chats with the in laws is they might be willing to buy part of the house with her until I can get a job and take it on myself. The guy on the phone did not sound to convinced by this.

Does anyone know whether this would work?


M&F offer to lend daughter enough to buy the more expensive house, with a "second charge" over the property to secure their loan. Are there mortgage lenders prepared to allow this, with their loan having the first charge on the property?

amnblog

No that won't work.

What you have suggested on this thread has plenty of holes in it. But there may be a solution with the right advise from someone who has had a good look at the situation.

ethank

kidmugsy wrote: »

Does anyone know whether this would work?


M&F offer to lend daughter enough to buy the more expensive house, with a "second charge" over the property to secure their loan. Are there mortgage lenders prepared to allow this, with their loan having the first charge on the property?

I don't think this would work as mortgage lenders would class this as an Equity Share. I know my own lender Nationwide states that they do not accept Equity shares from

The equity share holders listed below are unacceptable:

• Third party investors.
• Individual private vendors.
• Family Members.
• Employers.
• Selling agents.
• Self employed builder or property developer.

They will only accept equity shares from Volume Builders, Housing Associations and Help to Buy scheme.



Most lenders will details this in their lending criteria