Wishful thinking? Idea to get on the property ladder

Neverberich

Hi all,

It's my first time on here and wondered if anyone could offer me some advice.....

I'll try and explain...

My parents are looking to move house. They would be cash buyers. My idea is to get a mortgage on the house with them say for around £50,000. (My parents would then have £50,000 back in their pockets so to speak)

I would then 'borrow' this £50,000 to pay off a couple of debts but then also to use as a deposit on a property of my own. So in theory I would have 2 mortgages.

Is this something I would be able to do and would the mortgage on 'my' property have to be a buy to let mortgage?

I can't think of any other way to do it??

Thanks for reading. Any ideas/advice is welcome

Thrugelmir

Neverberich wrote: »

I can't think of any other way to do it??

Pay off your debts and save.

As your plan won't stand up to scrutiny.

skizz_b

Unfortunately I don’t think your plan stands up in its current form, for a start you wouldn’t be able to get a mortgage on a house that is in your parent’s name.

I think the only way this would realistically work would be if you parents were to take out a mortgage for £50k on the property in their names that you would commit to pay back, they would then give you the cash for the deposit and you would make a separate application in your name for theproperty you want to purchase. You would need to bear in mind how this impactson your outgoings etc as you would have to commit to paying that out. The legalities of this as well....I'm not sure. Someone else would be better placed to advise. Either that or they take out a personal loan for you to pay back.

I am puzzled as to why you would suggest the other mortgage wouldbe buy to let, are you not intending to live there? Realistically though I think Thrugelmir's advice is correct.

kingstreet

Neverberich wrote: »

My idea is to get a mortgage on the house with them say for around £50,000.

I would then 'borrow' this £50,000 to pay off a couple of debts but then also to use as a deposit on a property of my own. So in theory I would have 2 mortgages.

Is this something I would be able to do and would the mortgage on 'my' property have to be a buy to let mortgage?

If you take out a mortgage on their new home, they will have to be a party to it too and you will have to be an owner of their home. There are laws against people borrowing money on property they don't own.

You can have as many mortgages as you like as long as you can demonstrate you can afford them all.

PasturesNew

So, starting from having £0 in your pocket - and a fist full of debts ... you want to move to a position where you artificially pay off the debts, using borrowed money, putting your parents' life savings/hard work and home on the line so you can end up with two bigger debts on one and a half houses?

Madness. Back to the drawing board with you!