Getting a mortgage in my name for my parents?

LJC17

Hi there, am hoping you lovely people can help and just give me some basic advice at this stage. Am a total newbie when it comes to mortgages so forgive me if anything I ask is obvious but have had a quick google and am struggling to find anything much that relates to our situation.

Basically my parents currently rent a 3 bed council property and have the right to buy with in the region of 60k being knocked off the total value of the property. However both are over retirement age, although my dad is still working full time. Last time they looked in to buying the property themselves they struggled to find a mortgage company that would lend them the money mainly due to their age. They have some money saved up which they could use as a deposit aswell. The topic has come up again and we are now wondering if there is any way I could take the mortgage out on the property with them making the repayments to me every month? They can afford to do this and I don't want to pay towards it in anyway.

I am 33 and live with my partner with no mortgage and on my salary should be able to borrow the amount they would need but we just aren't sure how we would go about this or if it was something mortgage companies do? In theory it doesn't seem that different to parents who help out their children as first time buyers it's just me helping them?

Any help or advice or where to go for mortgages of this sort would be greatly appreciated.

Thanks

mrginge

Why on earth would they want to give up their security for the hassle and risks of ownership?

LJC17

Well I think they are worried about the possibility of being rehoused by the council as the options for older tennants are limited where we are so they are thinking its security and peace of mind in that respect and it almost seems silly not to as in this day an age you wouldn't get the chance to buy a 3 bed for that money?

mrginge

It wont be peace of mind when they have to fork out for repairs and maintenance.

Anyway, the plan is going nowhere as they have to be named on the mortgage in order to qualify for the discount.

audigex

Could you take out a loan to give them a big enough deposit that they can get a mortgage?

They're presumably between 50 and 65, so I suspect their age is the main issue... but particularly if they're toward the lower end of that scale it's not infeasible that with a smaller mortgage required they could get a term acceptable to the lender.

My advice is find out what the longest mortgage term they can get is (likely to be 65-(their age), but possibly more).

From that you should be able to work out roughly what size mortgage they could be allowed, and from there work out if it's possible to fund it.

1) ie go on MSE best buys
2) enter that mortgage term you worked out above
3) enter their house value
4) then slowly increase the "how much would you like to borrow" field until you hit their monthly payment. Make sure you include a bit of slack in that figure, to account for rate rises

If it seems doable, go see a broker to run the numbers properly with professional advice, as the above maths is a bit "back of a fag packet"

LJC17

Thanks audigex. Will have a look at what you suggested they are both over 65 which is where the most of the problems will come up.

A loan is another possibility so I would just borrow what I could and they would add that to their deposit and see if that helps them get a mortgage as it would be smaller.

If it hasn't got legs Mrginge then it hasn't got legs that was my main reason for looking on here an posting to see if anyone knew if this was possible or not. It's just unfortunate that they are in a position to buy a property cheaper but can't due to their age. Thanks for your input.

maninthestreet

As you're not renting the property yourself, you don't qualify for 'right to buy'.

Annisele

Before your parents decide it's completely impossible for them to get a mortgage themselves, I think they should see a broker. Depending on their pension arrangements, it's just about possible there might be a lender around for them. (Though if their pension arrangements = state pension, I don't think they'll get far).

When you say you "live with your partner with no mortgage" do you mean you're living in your partner's house? Or that you've paid off your mortgage? Or that you're renting? If you've already paid off your mortgage, you might be able to get a new mortgage secured on your house, and gift the money to your parents.

If you haven't already got a mortgage-free home of your own, I'd be wary of getting a mortgage for your parents. Even if you manage it - which I think is extremely unlikely - it might prevent you from buying a house of your own in future.