Mortgage with parent

Shiplee15

Hi everyone.

I've recently been looking into the potential of buying my own house and found that I don't really stand a chance in the area I'm living.

The bank has told me I can only "afford" exactly half of what I'm paying in rent which is a bit odd but I understand there are a lot of additional costs when owning.

The biggest downfall is my salary and 4.75 times that not being enough to loan enough in this area.

I just wondered if it is possible to get a joint mortgage with a parent(s) to almost "boost" the amount available? I know roughly what value property I could go to where the monthly payments are affordable and they wouldn't have to pay anything so I wouldn't be asking for them to pay anything just be there as the booster so to speak.

Anyway, I'm not sure if this is possible or not or if anyone else has done this that could advise? My dad did go into the building society he is part of who told him it isn't possible which is why I'm asking as it seems like a simple joint mortgage to me but I'm very inexperienced here.

Thanks in advance to those who can help and sorry if this is a ridiculous question!!

Thrugelmir

Shiplee15 wrote: »

The bank has told me I can only "afford" exactly half of what I'm paying in rent which is a bit odd but I understand there are a lot of additional costs when owning.

Your mortgage will rise as interest rates do. A mortgage is a 25/30/40 year commitment. Take the long term view. Over extending yourself financially isn't worth the risk.

Be prepared to move further afield to purchase your first property.

Mortgage_724433

You may find it useful speaking with a whole of market mortgage advisor. In my experience lenders at times can be wildly different on the amounts they're willing to lend.

pathtofreedom

If your parents already own a house you'd be subject to paying the second home stamp duty. Depending how old they are as well this might reduce the term you can borrow over which in turn increases your payments. If, god forbid, one or both of them died, would this cause tax problems with inheritance tax meaning you also have to sell your home while dealing with your grief (not fun).

I believe their are some new mortgages out where they can do a guarantor mortgage against equity in your parents house, but what if they need long term care, or die, to me these deals sound very dodgy. As already suggested a broker might be able to help understand this setup more.

Could they afford to gift you a deposit - but again what if they could do with that money back in the future, could you live with the guilt if they can't afford care they need and can't pay it back.

Is your job one where you could look for similar jobs in different / cheaper areas of the uk or the eu, or is tied to a specific place only (unlikely).

How much deposit do you have saved? And also money towards costs as that can be as big as a deposit depending how much you're thinking of spending.