first time buyer wanting to rent to family

benji88uk

Hello,

I am looking at buying my first property with the plan of putting my dad and his partner in it. Here is the basic story, my mum and dad have separated (not yet divorced) my mum is living in the house that her and my dad have a mortgage on, he still pays the mortgage. My dad is also renting a property paying £400+ cpm in rent.

I have just returned from canada where i was living on a working holiday visa, I wish to continue travelling and plan to head off again in the new year. I spoke briefly to a mortgage advisor who told me I would struggle getting a mortgage to allow my dad to rent it whilst overseas.

I've done some homework and found a couple of places like skip ton international offer a buy to rent for expats and people living abroad.

My questions are, could i get a mortgage myself and have my dad move in and pay me whilst i still pay the mortgage legally? I imagine my mortgage payments to be around £280 PCM so without making any money off my dad i'd be helping him save some too.

If I can't do it that way is there an alternative method? Could i perhaps get a mortgage with my dad?

any help would be greatly appreciated, I'm not looking to make any money i just figure it will help me get on the property ladder, save my old man some money and allow me to continue travelling without being tied down.

thanks in advance..

Ben

marliepanda

You can't rent your house to your dad on a residential mortgage no. That's mortgage fraud.

G_M

I don't believe any mortgage lenders permit letting to family, but try an independant mortgage broker and ask.

You'd also need to understand what being a LL involves, including the tax rules on overseas landlords.

* New landlords: advice, information & links

* HMRC (Non Resident [= overseas] Landlord Scheme)

davidmcn

The "continue travelling" bit may be a problem for any lender. They like to know where their borrowers are.

I presume the Skipton's products are aimed at customers who have a fixed abode, even if that is abroad.

Pixie5740

It is possible to have a mortgage that allows you to let to family. I think they are call Regulated BTL Mortgages. I'm not sure how many are available or how easy they are to get. A mortgage broker should be able to help you though.