Guarantor mortgage / buy to let help from father?

Bikeminx

Hi all, I'm very much stuck in the rental market. I've struggled all my life and got a terrible credit rating etc. I've never had a mortgage myself and I'm 35 now with a 15 year old son. I'm a single parent on real low income but surviving (just!) on working familes tax credits and my low wage.

I've just got into the fire service which I plan on staying and working my way up in for a long time. The contract starts on 50% at around £300 a month and could rise in about 6 months to £600 a month.

The low wage, terrible credit history etc is meaning I'm totally stuck in rental properties. My father has offered to help but I don't know enough to see exactly the best way to try and go about things.

My father is 72 but has paid off his mortgage (house is worth about £120k) and he also has 1/3 share in a commercial property (which adds about £20k) to money he has in property. He has said about getting a buy to let and renting to me until I can afford to take on the mortgage proper or being a guarantor on a normal mortgage.

I've seen most guarentor mortgages want the guarentor to be 65 or under which my father is not. Also to have incoming money to cover the mortgage incase I can not pay (which he only has pension and a bit from the commercial rental - not enough to cover a repayment). He does however have the equity in the properties.

The other buy to let option I have seen requires a very large deposit and also will have to have to have the money borrowed against his property not covered by income.

Does anyone have any advice or has been through a similar situation? Are there any options open to us so I can get on the housing ladder? I'd really appreciate hearing from some real people with their experience as opposed to mortgage brokers etc.

Thanks all, Becky.

silvercar

As you are only just starting out in a new career I would be nervous of you taking on a mortgage (by yourself or with father or even in father's name) at this point.

Worst scenario is that you and/or him take on a mortgage, you lose your job and neither of you can afford to pay it.

Thrugelmir

Now that your income is increasing. Focus on managing your personal finances properly. Thereby rebuilding your credit rating in the process.

betmunch

Not going to comment on the mortgage situation as requested, but curious as to why you don't want to hear from us Mortgage Advisors?

Surely we are best placed to tell you what can and can't do?

kingstreet

Lucky escape, bm.

Don't knock it!