Joint Mortgage with parents

marksct

I would appreciate if anyone has any advice or experience that they can offer in this situation.

Essentially, I am looking to borrow around £300k for a flat. My parents have a 10% deposit they will chip in, but one of them will also need to be named on the mortgage for me to be able to borrow the remaining £270k. (my salary is around £33k, and theirs is £58k)

Unfortunately, they are both 55, so most lenders won't lend for more than 10 years (until state retirement age). Nationwide will lend to age 75, which is fine (i.e. 19 year term), but I have been told by an advisor at Nationwide that they do not do joint mortgages if the parent is not going ot be living in the property.

Does anyone know whether this information from Nationwide is correct? Is there anyway I could get a mortgage with a parent not living in the property? Are there any other lenders that might assist in my situation?

At the moment things seem pretty hopeless!!
Any help appreciated

Rollinghills

I have no answers but from our experience even though Nationwide say they lend to 75 that is not straightforward, we considered going over 65 but decided not too because the paperwork required looked very complicated.

Would your parents be contributing to your mortgage payments? You have no deposit on your own and taking on a mortgage of 270k on a salary of 33k, that is over 8x salary. Do your parents own their home? Do they have an amazing pension? Otherwise I think you are over-stretching yourself.

Daniel54

marksct wrote: »

I am looking to borrow around £300k for a flat.
At the moment things seem pretty hopeless!!

You are in a great position -with a £30k deposit from your parents and a decent salary.But you are looking to borrow too much.

Much better to work out what you can afford and then look at properties in that category

MonkeyDr

Hi

I did this about 10 years ago. Slightly different situation in that I had saved the deposit myself, but, the like the OP, my salary wasn't enough to get a viable mortgage. My parents were in their early 50s at the time, and I think we got a 15 year mortgage. It worked because I took in 2 lodgers, so I can see how the OP might not be over-stretching.

We used a broker. I think initial mortgage was with Stroud and Swindon, and later with HSBC.

No idea if it's still do-able now; I bought them out some time ago.

MD

mrginge

Who's actually going to be paying this 270k mortgage?

My q&d calculations give a mortgage payment of circa £1500 against a take home of circa £2100.

marksct

I would pay the mortgage, with income (£500-600 pm) from a tenant as the extra needed. So certainly affordable I believe.

Opinion

marksct wrote: »

I would pay the mortgage, with income (£500-600 pm) from a tenant as the extra needed. So certainly affordable I believe.

Have you figured out your other outgoings? £2,100pcm take home - £1,500pcm mortgage + £500pcm lodger = £1,100pcm disposable.

Service charge? Council Tax? Car finance/tax/insurance? Train/bus/travel? Utilities? Those alone could eat up a large chunk of your disposable income, especially the first two if you're in London/SE with concierge etc.

Thrugelmir

marksct wrote: »

I would pay the mortgage, with income (£500-600 pm) from a tenant as the extra needed. So certainly affordable I believe.

Unfortunately lenders will take a diametrically opposing view and discount the lodgers income as well. Suggest you lower your sights to something that is affordable. Rather than wasting your time scheming the unachievable.