Mortgage help

steve0606

Hi there

I am looking to buy my Mother's council house under the Right to Buy scheme. Essentially, my plan is this: I will live at home for the next 3 years whilst saving up hopefully around 12k for a deposit which will increase to 15k if I open a Help to Buy ISA. After that, I should be able to afford to pay for the mortgage myself (I should be on a 45k salary by then as a Chartered Accountant).

I have been told that i will need to get a joint mortgage with my Mother if we are to get the Right to Buy discount. The house is worth no more than 200k and we should be entitled to a £77,900 discount. With the deposit, that should go down to no more than £107,100 needing to be borrowed.

My only concern is my Mother's ability to be accepted onto a joint mortgage. She will be 61 and only earns minimum wage (she is in receipt of Universal credit at the moment). My question is, if we make a joint application, will her circumstances be detrimental to us being able to get the mortgage or will they accept that I will be able to pay it all myself?

Many thanks for your help

csgohan4

Oh no, not another one.

Again the question as always, what does your mother want and is it really in her best interests?

She gets the discount not you and her being on a mortgage if you can get one, it will be a very short term.

And I certainly hope not

steve0606

Hi csgohan4

Sorry but I'm new to this forum. She said that she wants me to buy it as it is of course a very good deal, given the discount. We agree that it is in her best interests as she will be living in the house with me and will not have to get rehoused if I move out. I would like the mortgage length to be around 20 years.

ACG

There are lenders who will disregard her age if her income is not required. I did one recently where I could go to the eldest persons 75th birthday for example.

The issue you potentially have here is that if you do buy this property and then try to buy your own property in 3 years time, you will end up paying the higher rate of stamp duty on your new place.

To get an idea, use this link - https://www.moneyadviceservice.org.uk/en/tools/house-buying/stamp-duty-calculator
Put in an approximate purchase price and tick the box underneath.

csgohan4

steve0606 wrote: »

Hi csgohan4

Sorry but I'm new to this forum. She said that she wants me to buy it as it is of course a very good deal, given the discount. We agree that it is in her best interests as she will be living in the house with me and will not have to get rehoused if I move out. I would like the mortgage length to be around 20 years.

If you move out, can you afford to pay both rent and a mortgage or two mortgages if you can afford it.

What if you have a partner who wants more privacy and wants to live with just you and the children? can you afford another mortgage?

Will you sell the home and dump your mother in a nursing home?? It does happen