Joint Mortgage for Family Member?

djidave

Hi,

A parent of ours is looking to buy a property and has a large deposit, but as they are close to retirement (~5 years) little hope of getting a mortgage.

Can anyone help with what the implications would be for us to provide the backing (and possible monthly payment) for the mortgage and them to put down the deposit? The questions I have are around

1) We already own a house, so would this be classed as a 2nd home even though it is not ours (and therefore stamp duty tax increase etc)?
2) We are (presumed) to be the sole heirs to their estate but does this cause any complications in that regard
3) Negative credit issues, as we are due to re-mortgage our current home in the next 12 months?

Any pointers or advice is welcome.

Thanks

Dave

dimbo61

Some lenders will now lend upto 80/85 years of age.
If your parent is also getting a good pension they maybe able to afford the mortgage on their own.

tom2205

You could look at the possibility of a guarantor mortgage with your family member. They would assess the affordability based on just the guarantors salary and take into consideration out outgoings but can be feasible if within lenders limits to gain a higher affordability.