Help - Mortgage confusion!

lonestarfan

silvercar wrote: »

All looks doable, except that for you to take the mortgage the property needs to be in your name or joint names. If you just sell up and move in with your Dad and pay his mortgage, you will have to keep the unsecured loan going and take another loan to clear the mortgage shortfall. All possible, but the interest rate on the unsecured will jump to possibly 12% if you don't have the mortgage - assuming it is NRAM.

I think the op intends to pay off the £20k unsecured loan.
I think they want to borrow £80k in total made up of £10k shortfall, £20k unsecured loan, £50k IO fathers Mortgage.
Can the op apply for an £80k mortgage on the fathers property worth £300k in her own name and he still lives there.
The salary, age, contract type, credit history seems ok.

silvercar

Can the op apply for an £80k mortgage on the fathers property worth £300k in her own name and he still lives there.

You need to own a property to take a mortgage on it. Could own joint with father or solely. Can't take a mortgage on something you don't own.

lonestarfan

silvercar wrote: »

You need to own a property to take a mortgage on it. Could own joint with father or solely. Can't take a mortgage on something you don't own.

Obviously she can't have a mortgage on something she doesn't own.
She'd have to own it by buying it off her father with a mortgage in her sole name or be part owner with her father by applying for a mortgage in joint names.
If she applied for a mortgage in her own name how does the lender view the purchase price/deposit as she's not putting in any of her own money as there's no equity in her current home. The father will also continue living there so that presents issues too.
Op doesnt say what age the father is so may have a limited term or may not be able to go on a joint mortgage due to his age.
There's the deprivation of assets issue you mention too as well as her getting the lender to agree to her sale as it's less than the balance she owes.
One for the broker as amnblog says.

cat_shark

Gosh there's so much to consider. My father wants to sign his property to me and if he needs care in the future then I guess that is a factor to be taken into account. I would never compromise my dads welfare and that would have to come first. My father is 70 and I am 49.