Complicated mortgage situation: would a broker be able to help?

getmore4less

Ali_Hale wrote: »

Nope.

I do appreciate everyone's warnings about renting to friends. This is *one* option we're exploring.

Even if a lender will accommodate this sort of proposal...


You need to be 100% sure you can cover the costs without any rent coming in.

getmore4less

What rent do those 120k places make?

getmore4less

What are the repayment terms on the loan?

Ali_Hale

getmore4less wrote: »

What rent do those 120k places make?

From looking at similar properties up for rent in our area, around £550-600/month.

getmore4less wrote: »

What are the repayment terms on the loan?

It's supposed to be paid off in full by mid-2035 (ie. 25 yrs since start date). We're currently paying my dad £866.02/month.

It would be possible to take a "holiday" from the loan if needed, but this would increase our monthly payments in future, in order to pay it off by the deadline.


As I say, this is one option we're exploring. I realise there are a lot of potential downsides, not least the danger of mixing friends and money. I'm really just trying to establish the feasibility of it, and particularly, whether a broker will be able to offer useful advice.

What I'm hoping for, if I do go to a broker, is either:

1. A mortgage deal (yay)
2. A very clear picture of what we need to do / change in order to get a mortgage deal (e.g. "Ali, you will need one year of accounts showing an income of at least £X...")

I feel like the consensus here is that a broker would be able to offer 2., even if 1. is not possible (which I realise it may well not be).

getmore4less

You have a loan you pay £866pm and a gift back that gives you £500pm from the same source.

quite an unusual way to reduce a IHT liability

neo2020

Ali_Hale wrote: »

I'm really just trying to establish the feasibility of it, and particularly, whether a broker will be able to offer useful advice.

There's only one way to establish this: speak to a broker. No broker will charge you for the initial consultation.

Ali_Hale

neo2020 wrote: »

There's only one way to establish this: speak to a broker. No broker will charge you for the initial consultation.

That's very reassuring, thank you! :-)