Interest only mortgage?

Pixie5740

Georgiah406 wrote: »

I've been considering buying the property from her myself and she would live there until the council come through with a house, not sure how this would affect my ability to get another mortgage on a property for me and my partner though??

If you were to charge your gran rent then you'd be looking at a Regulated BTL mortgage. You'd also need at least a 25% deposit.

Alternatively you could by it with a residential mortgage but then you'd probably have problems getting a second mortgage for you and your partner.

Whichever route you tried to go down you'd need two deposits since there's no equity in the current property for your gran to gift to you.

You buying the property won't necessarily speed up the process with the council anyway. As far as they'd be concerned she would have a roof over her head so would be less of a priority than others on the waiting list.

getmore4less

The mortgage becomes a non issue when the place is sold(if it gets enough)

it has been identified it is not a suitable property anyway, just get on with the move options and come back to the mortgage later.

Lender will probably be simpathetic if the place is still up for sale at the time.

Georgiah406

I wouldn't get a BTL mortgage, already checked but there would be no harm in me moving in and my nan living there (but she wouldn't be named on the mortgage) and contributing to the mortgage. I think she's going to speak to the council tomorrow and see what can be done/possible waiting times in our area!

konark

According to the house price index sites house prices have risen 20% since 2005, so there may be more equity in the property than you thought, and lets face it with 100% mortgage she's made that equity without bringing penny one of her own money to the party.

getmore4less

konark wrote: »

According to the house price index sites house prices have risen 20% since 2005, so there may be more equity in the property than you thought, and lets face it with 100% mortgage she's made that equity without bringing penny one of her own money to the party.

Some areas of the UK are still well under, negative equity in the worst areas is still a high % of households, some people that bought at the peak saw over 50% losses and still not recovered.

maninthestreet

So, what is the current value of the property, and how much is still owing on the mortgage?

Yorkie1

Georgiah406 wrote: »

I wouldn't get a BTL mortgage, already checked but there would be no harm in me moving in and my nan living there (but she wouldn't be named on the mortgage) and contributing to the mortgage. I think she's going to speak to the council tomorrow and see what can be done/possible waiting times in our area!

Your mortgage company is likely to have issues with the previous owner remaining in occupation after the sale to you.

ViolaLass

If you would move in for your nan, how could you then go for a residential mortgage with your partner?