We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Buy to let for family member?

My mother has offered in principle to buy us a flat with a view to us living in it for a year then continuing it as a BTL.

However, normal BTL mortgages obviously ban this, and she has spoken to just one broker who has said a 'family member BTL mortgage' would not be possible on her income (around £21k). Does this sound correct, or is it worth pursuing other brokers?

For a £100k ish flat with 20k deposit.

Comments

  • ACG
    ACG Posts: 24,746 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    Theyre called regulated BTLs.

    They are based on the purchasers income - rather than rent.
    Because of that, they also have to look in their current financial circumstances, so if your mother does not have a mortgage, you will be fin. If she has a mortgage in excess of say £20k then you may find it a difficult.
    I am a Mortgage Adviser
    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.
  • rev_henry
    rev_henry Posts: 4,965 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    ACG wrote: »
    Theyre called regulated BTLs.

    They are based on the purchasers income - rather than rent.
    Because of that, they also have to look in their current financial circumstances, so if your mother does not have a mortgage, you will be fin. If she has a mortgage in excess of say £20k then you may find it a difficult.
    As I suspected. Yes she does have a mortgage in addition to renting the home she lives in.
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 352.5K Banking & Borrowing
  • 253.7K Reduce Debt & Boost Income
  • 454.5K Spending & Discounts
  • 245.5K Work, Benefits & Business
  • 601.4K Mortgages, Homes & Bills
  • 177.6K Life & Family
  • 259.4K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.