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Mortgage info help please

My son currently does not have sufficient deposit to qualify for a mortgage on a house. He was considering renting whilst continuing to save. Seems like wasted money to me and I am willing to lend him £140000 to buy the house. He will pay me £850 per month for 2 years which I will hold in a separate account. This will then give him approx 20% value in the property.

My question is that given he has 20% value would he be able to get a mortgage to repay my loan. Would the bank be happy to remortgage under these circumstances.

Grateful for any advice.

Comments

  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Why not just gift him the deposit at the outset?
  • If I gifted him the depost I would have to the same with my other kids. Not practical. I am looking to loan him the balance and be repaid when he mortgages the house in 1-2 years. Less what he's repaid at that time at £850 per month. My only worry is would bank grant a mortgage in 1-2 years payable to me?
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