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Releasing equity from parents house for my 1st home deposit?
madsaz24
Posts: 5 Forumite
Hi all, I just want to get some advice/opinion on the below idea in regards to my parents property:
My mum bought her home for £22,000 around 20 years ago. She has roughly 5-10 years left on her mortgage.
Recently, the home has been valued at £98,000. I suggested the idea of taking £10,000 out of that profit for my own deposit on my first house. We agreed it was an idea to be considered.
However, my mums credit rating is extremely poor, would this affect this process. Is this idea even plausible/a good idea?
Would this affect her payments considerably? I was under the impression that because its potential profit, it wouldn't be that dramatic, however I do not know much about this process, only a half hour research session here and there.
When she hit hard times, I stepped up and paid a substantial amount of the mortgage payments for her over a period of about a year. I do not believe that I am owed this potential deposit, merely suggested as I am struggling to get on the housing market.
My mum bought her home for £22,000 around 20 years ago. She has roughly 5-10 years left on her mortgage.
Recently, the home has been valued at £98,000. I suggested the idea of taking £10,000 out of that profit for my own deposit on my first house. We agreed it was an idea to be considered.
However, my mums credit rating is extremely poor, would this affect this process. Is this idea even plausible/a good idea?
Would this affect her payments considerably? I was under the impression that because its potential profit, it wouldn't be that dramatic, however I do not know much about this process, only a half hour research session here and there.
When she hit hard times, I stepped up and paid a substantial amount of the mortgage payments for her over a period of about a year. I do not believe that I am owed this potential deposit, merely suggested as I am struggling to get on the housing market.
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Comments
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Raising money against your mother's property is subject to her being a suitable risk.
If she is struggling to pay her current mortgage why would a lender consider she can afford an extra £10,000.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, 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 -
Mum would have to remortgage or take out a further advance to gift you £10,000 which due to her poor credit rating is highly unlikely.
It's not a good idea anyway as it leaves her legally responsible for a debt that is not morally hers.0 -
You wouldn't get a mortgage at the moment considering your current position so there's no need for Mum to go into debt on your behalf -
https://forums.moneysavingexpert.com/discussion/comment/53430403#Comment_534304030 -
Oh dear.
Running before you can walk I'm afraid. You need to sort your own issues out first.0 -
You wouldn't get a mortgage at the moment considering your current position so there's no need for Mum to go into debt on your behalf -
https://forums.moneysavingexpert.com/discussion/comment/53430403#Comment_53430403
To be fair to the OP, that post was over 2 years ago so she may well have moved on since then and resolved the credit card issues.0 -
TrickyDicky101 wrote: »To be fair to the OP, that post was over 2 years ago so she may well have moved on since then and resolved the credit card issues.
But if they missed payments as they suggest, their own credit file will still be in a mess.:heartpuls Mrs Marleyboy :heartpuls
MSE: many of the benefits of a helpful family, without disadvantages like having to compete for the tv remote
Proud Parents to an Aut-some son 0
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