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Mortgage with parents
studentfor_life
Posts: 7 Forumite
I am looking at purchasing my first house and will be doing so with my dad.
The idea is that I purchase half(mortgage) 60k mortgage needed and 7k deposit. My dad buys his half outright 67k no mortgage needed.
Affordability is fine I think. I earn £23800 per annum and have no credit cards, loans or hire purchases etc
Will this be acceptable to mortgage companies?
The idea is that I purchase half(mortgage) 60k mortgage needed and 7k deposit. My dad buys his half outright 67k no mortgage needed.
Affordability is fine I think. I earn £23800 per annum and have no credit cards, loans or hire purchases etc
Will this be acceptable to mortgage companies?
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Comments
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any opinions?0
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Your father would need to be named on the mortgage too (can't have fewer names of the mortgage than there are on the title to the property) in which case he will be jointly and severally liable for the whole of the mortgage debt.
His age may limit your ability to borrow with some lenders (the brokers on here will be able to advise the likelihood of this).0 -
You are jointly purchasing a property and will require a joint mortgage to do so.
Affordability will be determined by income/outgoings and the mortgage term, which is affected by the age of the applicant.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 -
Ah thanks, is there a way to do it with shared equity i.e. dad as other owner charging nominal rent?0
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No. Shared equity is a process where another party takes a charge over the property for an amount or percentage of the ownership. Lenders will not accept this where the third party is a private individual.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
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Thanks, maybe I can persuade him to gift me the money, he did something similar with my sister but not quite as much.
Thank you for the information.0 -
kingstreet wrote: »No. Shared equity is a process where another party takes a charge over the property for an amount or percentage of the ownership. Lenders will not accept this where the third party is a private individual.
Would shared ownership work or is that the same thing?0 -
Shared ownership is different to shared equity as a third party owns a portion of the property, but again, lenders only accept SO where the third party is a Registered Social Landlord.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
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There is no way to buy this without him going on the mortgage, and you do not earn enough to support a £120k mortgage even if he gifted you his £7k deposit.0
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There is no way to buy this without him going on the mortgage, and you do not earn enough to support a £120k mortgage even if he gifted you his £7k deposit.
OP has the 7k deposit and father has 67k available, so it's more about is father willing to gift the 67k rather then be co-owner/co-mortgagee. If father was willing to gift the 67k then OP would need to find mortgage for 46k plus additional money for solicitor etc.0
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