Son getting mortgage for parents to buy house

iamugly

Hi,
Me and wife have inherited a half share of a house that has just sold.
We need to buy a new home as we currently live in the inherited house (late fathers house and we moved into it when he went into a home, has since passed away)

We need a bungalow due to my care needs, my wife is my carer so neither of us can work at the moment.
We are about 30k short of getting the home we want and our son has offered to get a mortgage for 30k to add to our inherited money so we can buy it.
Neither me or wife can get a mortgage as bad credit and in an arrangement to pay large debts.
Would son be able to get a mortgage without putting any of his own money down as a deposit?
what I mean is would the mortgage people consider our cash payment as his deposit?

Any advice?
Thanks

csgohan4

it would have to be a gifted deposit, but then it puts your son under legal responsibilities such as being a Landlord with tax implications as well.


Not to mention a lot of lenders frown upon letting relatives stay in the house while your son is not there. Since your son is not living there it would be a buy to let and therefore stricter criteria.


I would be careful about this, money and family generally don't mix and your son and you have a lot to lose if this goes wrong. If you son already has a house he would have to pay extra stamp duty as well.


If you son wants to get married and wants a place for himself it would cost him more since he already has a house which you occupy and it sounds like you won't be able to pay your son given your large debts.


I would hit the debtfreewannabee forums to reduce your debts. Consider finding a cheaper house/flat to live in

getmore4less

Have you told your creditors of your new financial position?

debtisnotme

getmore4less wrote: »

Have you told your creditors of your new financial position?

I think securing a roof over their heads is more important than paying unsecured creditors.

iamugly

As the house we currently live in is being sold then we dont have anywhere to live so we need that money to buy somewhere. As we have an arrangement through stepchange to pay our debts, will this be a problem?

Son's partner has her own house and son lives with her so he doesnt have a mortgage.

chanz4

ask step change, the inherited cash should be going towards the debts. What if they ask for your bank statements on a review?

Caz3121

will you be planning on getting a mortgage with your son or is the plan to have it in his name?
If the latter - for the inheritance/deposit, do you plan to lend it to him or gift it to him?
as has been mentioned lenders are not keen on buy to lets where the property will be rented to family members
Probably something he will need to sit down with a broker and find if this is an option

iamugly

The problem with that is we will lose benefits and have no money to live on or buy a house with if we pay our debts.

Mojisola

iamugly wrote: »

The problem with that is we will lose benefits and have no money to live on or buy a house with if we pay our debts.

If you receive an inheritance and use the money to buy somewhere to live, you will not lose your benefits - this isn't classified as deliberate deprivation of capital.

iamugly

Yes thats why we want to buy.

Mojisola

iamugly wrote: »

Yes thats why we want to buy.

The debts are another issue. If you owed me money and you received a lump sum, I'd want my money from you.