Joint purchase - half cash half mortgage

Savvyjevvy

Hi

I would like to buy a property with one of my parents helping out.

I'm self employed, only recently starting up so don't have enough income record to qualify for my own mortgage.

I am selling my place, and will make a good profit. This will be around 50% of the new property value, and my mum has said she will help, by taking out a mortgage for the rest. We will own the property 50/50 putting equal share down - mine in cash and hers in mortgage.

I have been told now that this is not possible, we cannot boh be named on the deeds as joint owners if we do not have my name on the mortgage. Can anyone help with a way around this?

I mean, if we got two mortgages on the property which i have heard happen before, and I paid mine off early, we would be in the same position, so I dont really understand!

Thanks!!

HappyMJ

Savvyjevvy wrote: »

Hi

I would like to buy a property with one of my parents helping out.

I'm self employed, only recently starting up so don't have enough income record to qualify for my own mortgage.

I am selling my place, and will make a good profit. This will be around 50% of the new property value, and my mum has said she will help, by taking out a mortgage for the rest. We will own the property 50/50 putting equal share down - mine in cash and hers in mortgage.

I have been told now that this is not possible, we cannot boh be named on the deeds as joint owners if we do not have my name on the mortgage. Can anyone help with a way around this?

I mean, if we got two mortgages on the property which i have heard happen before, and I paid mine off early, we would be in the same position, so I dont really understand!

Thanks!!

You will need to be on the mortgage. The whole property will be repossessed if the mortgage isn't paid...you will lose some of your contribution in that case.

As a second applicant on the mortgage you should be fine declaring your low income as (I'm assuming) your mother has enough income to qualify for the mortgage...will she be living in this property as her main home? She has to live there with you.

If your mother owns a property of her own she could take out a mortgage on her own property and you buy this house with cash without a mortgage. You can then state on the deeds that your mother is a 50/50 owner in this property.