Son and Daughter split

Warden8632

My son and his girl friend are splitting up and my son wants to retain the house, he earns 25k per year and the mortgage on the property is 125k, the value of the property is 140k. is there anyway that it is possible for him to afford it, or if I can use the equity in my home to stand as guarantor for the extra he requires without re-mortgaging my home or using any of our savings to stump up the 25k extra he needs to bring his borrowing up to the required level. Regards Warden8632

kingstreet

Suggest you put this to the lender who will establish affordability based on income and expenditure. At 5x income before outgoings, it will be difficult.

If it agrees, the matter is passed to a solicitor for the transfer of equity to be processed and the other party removed from the mortgage and the ownership, for which she will need to sign the transfer paper.

Usual cost £450 to £600 for a transfer of equity.