Mortgage Advice - mother and son

lotsofflowers

I am looking in to buying a home under the shared ownership scheme. I have a large lump some of money from the sale of my last house, which I want to put towards the deposit and hold some back to pay my mortgage. Unfortunately, despite having this money, I am not on a high enough salary to qualify for a mortgage. My son, who lives with me, is also on a small salary, but combined they are enough to get a mortgage. My son would not need to actually pay the mortgage as with my savings and salary combined I can afford to pay it myself, but his name will need to be on the deeds. Is the allowed? Will it cause problems for him in the future if he wants to get a mortgage of his own? I don't want to do anything illegal, so any advice is much appreciated.

HappyMJ

Yes it's allowed. It can cause problems so you need to be aware of them. He could get married move out and then later get divorced and his stake in this house would be used in any settlement. If he doesn't have the cash to pay his now ex off then you could lose the house so that he can pay his ex partner off. He could also die and his assets distributed to his heirs but life insurance and a will should cover that eventuality should it occur. Life insurance at his age will be very cheap as the chance of him dying is slim but something to take into account. It shouldn't cause him any problems getting another mortgage on another house as long as you continue to pay the mortgage yourself. If you can't afford it due to illness or lack of income they may take the implied payments he should be making into account when calculating whether he can afford another mortgage.

tvfreek

There is nothing illegal in your suggestion. If he decides to get a mortgage of his own in the future his jopint mortgage with you will be taken into consideration but perhaps cross that bridge when it presents itself.

Funny_old_game

Holding money back from the sale to pay part if the mortgage demonstrates you cannot afford s mortgage. If a lender knew that they'd pull out straight away. I'd keep that to yourself if I were you.

In 9 years time when your son wants a mortgage but being on yours us holding him back you'll be faced with bigger emotional and financial worries if the lender refuses yo release him meaning you stop him getting another mortgage.

Not the nows but the futures to think of.