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Guarantor Mortgage - Is this possible...?
Hannah75
Posts: 6 Forumite
My son is looking to get on to the property ladder *as soon as possible*. He currently has no credit commitments and we, his parents, would also be moving into the house that he purchases and paying rent to my son.
My son is currently only earning around £15k and is looking at a house with an asking price of approx. £110k with a £10k deposit to put down.
Obviously, this is above the range that a mortgage lender is prepared to offer my son (£65-75k), therefore, my father has offered to be a guarantor if possible. My father is in full time employment with no plans to retire in the near future all being well BUT he is 65 years old. He owns his own home with no mortgage.
Are there any lenders that will consider this scenario?
My son is currently only earning around £15k and is looking at a house with an asking price of approx. £110k with a £10k deposit to put down.
Obviously, this is above the range that a mortgage lender is prepared to offer my son (£65-75k), therefore, my father has offered to be a guarantor if possible. My father is in full time employment with no plans to retire in the near future all being well BUT he is 65 years old. He owns his own home with no mortgage.
Are there any lenders that will consider this scenario?
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Comments
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This is complex on a number of levels.
One for a mortgage broker to handle for you.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 -
I am intrigued - why would you want to rent from your son? Are you in receipt of housing benefit and would you expect that to fund your rent payments to your son?0
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TrickyDicky101 wrote: »I am intrigued - why would you want to rent from your son? Are you in receipt of housing benefit and would you expect that to fund your rent payments to your son?
No, we aren't in receipt of housing benefit.
However we do rent at the moment and would obviously rather pay rent to our son, thus helping him pay his mortgage than pay rent to our landlord and help him pay off his mortgage!0 -
Because of your relationship to your son, I believe his BTL options are further restricted to a Regulated BTL product. This is definitely one for a competent mortgage broker who will take all the circumstances into consideration.0
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His income is too low for most BTL lenders and adding to that it being a regulated BTL (family to occupy) the mortgage will be based on his personal income, rather than the rental income.
Where will he be living?I am a mortgage broker. 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. Please do not send PMs asking for one-to-one-advice, or representation.0 -
Is your son intending to live in the property as well?"You were only supposed to blow the bl**dy doors off!!"0
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We're not looking for a buy-to-let mortgage.
My son is intending to live in the property and we shall move in with him for x amount of time. I'm well aware that there will be a point when he will want to go it alone!0 -
Obviously, this is above the range that a mortgage lender is prepared to offer my son (£65-75k), therefore, my father has offered to be a guarantor if possible.
Having a guarantor doesn't make the mortgage any more affordable to your son. Affordability is the base point any lender.0 -
How can a guarantor aged 65 be certain of his ability to cover the whole mortgage payment for the whole term?
If you are going to live in the property, why don't you just buy it joint with him, or apply jointly for the mortgage with the ownership in his sole name?I am a mortgage broker. 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. Please do not send PMs asking for one-to-one-advice, or representation.0 -
One for a mortgage broker to handle for you.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
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