Getting mortgage with Deed of Trust

Oliver8891

Hi All,

My wife and I are currently living and working in London and have been renting for the last 4 years. We have some savings and I am in the fortunate position that my parents want to help get us on the ladder.

This is not a gift but they are not specifically looking to earn interest or have us pay back instalments. They would only look to reclaim their share once the property is sold. To protect their investment we are looking to get a Deed of Trust. I understand that we need to inform the bank of this as if we didn't our solicitor would need to do so and we may end up having the mortgage offer revoked. With our deposit and the investment of my parents we would look to have a 58.5% mortgage which is manageable and considerably less than our current rent (during the fixed term)

I am wondering how much trouble we will have attempting to get a mortgage if we write up a Deed of Trust? The banks will always get the first share of the property sale value but the more I read the more I see that the banks tend to demand the money should be a gift. Most posts I have seen are quite old on this subject so my information may be slightly out of date.

I know of other solutions like offset mortgages but with the property value we are looking at we would not be able to get the size of mortgage we need without the investment of my parents.

Other notes - parents have no mortgage of their own, they own their property and it is their only property currently.

Thanks in advance.

kingstreet

There are lenders who will accept this.

An independent broker would be able to shortlist the best options for you without you having to hit the phone and do the research yourself.