Mortgae help - buying a house, already on the deeds

Fraktion

Hi.

I'd like to buy my parents house.

I'm 36, current take home pay is £2266pcm.

My outgoings are around £1425pcm.

I have a £25k loan with the bank. A £10K mortgage outstanding and £11k of credit card debt.

My parents live abroad but the house they own is in the UK.

I am currently on the deeds of the house alongside my parents.

They have offered the house to me for £120k. The value of it is £140K. Average street price is £160k.

I don't have money for a deposit although my parents say they would give me the deposit money if I topped up the mortgage to pay them back.

Currently, as part of my outgoings, i'm paying them £300pcm rent and my mortgage payment is £250pcm. (the mortgage was originally for debt consolidation at £30k, secured against the house my parents own outright)


What do you guys think is the best course of action for me to purchase the house from them?

Red-Squirrel_2

Are you on the deeds as joint tenants with your parents or tenants in common? If the latter, what percentage do you already own?

kingstreet

This is a remortgage, with a transfer of equity.

Lenders use gross annual income, not net monthly and the monthly loan payment, not the amount borrowed or balance.

You can go back to the current lender and get additional borrowing to purchase your parents' equity, or remortgage to a new lender to repay the existing mortgage and borrow the extra you need.

The latter may see you get better rates, but be careful of any penalties surrounding the repayment of the existing mortgage.

The legal aspects of the transfer of equity may prove problematic if the other owners are outside the UK as they will have to sign the transfer forms and will be advised to seek independent legal advice.

Fraktion

Thanks for the replies guys.

To be honest, I don't know what the deal is on the deeds. Whether it states I own 33% or just that the house is in all 3 of our names.

Am I right in thinking i'm in a better position being on the deeds, already with a mortgage against the house? As Kingstreet says, it'd just be a 'simple' remortgage. So I wouldn't need to go through the hoop jumping process of requiring a deposit with a fine tooth combing of my finances?

kingstreet

No. You want to borrow more money, so you'll be subject to the same scrutiny as any other borrower, buying a house or remortgaging.

The difference is, it's a remortgage as you already own the place.