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Named on 2nd mortgage - impacts
colman12
Posts: 29 Forumite
Hi,
I have a mortgage on my own house.
My mother in law, who has a reduced income, is looking to buy a flat.
She has a reasonable deposit but her income would not warrant a big enough loan.
Her children and I intend on support her mortgage application.
I think the only option is to be named on the mortgage as a guarantor.
Would this still be treated like a now residential mortgage even though i already own 1 property?
I want to avoid being hit by buy to let level deposit requirements and stamp duties.
A relative will reside in the property, so i guess it can't be buy to let, so does that just make it a normal mortgage application.
Would it be easier for me to apply for the mortgage myself, as my mother in law would probably be offer a reduced mortgage in terms of length . i.e. 15 years instead of 25
I have a mortgage on my own house.
My mother in law, who has a reduced income, is looking to buy a flat.
She has a reasonable deposit but her income would not warrant a big enough loan.
Her children and I intend on support her mortgage application.
I think the only option is to be named on the mortgage as a guarantor.
Would this still be treated like a now residential mortgage even though i already own 1 property?
I want to avoid being hit by buy to let level deposit requirements and stamp duties.
A relative will reside in the property, so i guess it can't be buy to let, so does that just make it a normal mortgage application.
Would it be easier for me to apply for the mortgage myself, as my mother in law would probably be offer a reduced mortgage in terms of length . i.e. 15 years instead of 25
0
Comments
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You'll be hit by the stamp duty I'm afraid- there's no way around it if you want to be named on the mortgage. To avoid this you'd have to explore a guarantor mortgage.I am a Mortgage Adviser
______________________________________
This site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
You'll be hit by the stamp duty I'm afraid- there's no way around it if you want to be named on the mortgage. To avoid this you'd have to explore a guarantor mortgage.
The OP says "named on the mortgage as a guarantor," so not clear whether they mean merely as a guarantor (in which case no stamp duty implications and otherwise the purchase is just a normal sole purchase) or jointly purchasing with mum (extra SDLT on whole price).0 -
You need a single owner, joint mortgage application which are available with some lenders.
The smart move personally would probably be to keep out of it.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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