Mortgage advice on guarantors assistance

BMWBMW

Hi,

Just after some advice, my parents are desperate for me to move closer to them with my family.

I am aged 36 and have 100,000 equity in my current home and earn 40k per year.

There are new houses being built by my parents and a plot in particular we like is priced at 355.000.

A mortgage advisor says I will get a mortgage around 200k on my current salary. My missus is self employed but we are expecting child number 3, we only recently had child number 2. She took some time out of work and is likely to have further time off after the birth of child number 3, so is not in a position to do a joint mortgage. Please note our current home is in my name only.

My parents are 65 and 68, my mother 65 runs her own business and has no intentions of retiring anytime soon. My dad has retired. They live in a property and its value is 300k, it is mortgage free.

The shortfall in the mortgage for me to get the property I want is around 60k.

But my parents want to support me to get the property using there own property, to make up the shortfall.

Can this be done, any advice would be greatly appreciated.

John-K_3

Your parents could borrow against their house and gift you the money, but would you honestly want them taking on debt, and having to keep working for years to pay it back?

BMWBMW

John-K wrote: »

Your parents could borrow against their house and gift you the money, but would you honestly want them taking on debt, and having to keep working for years to pay it back?

Hi John, yes understand what you say.... Ideally I will need assistance for at least a couple of years until my missus is back at work and then when we come round to the next remortgage, my missus is back on track and can join me jointly on the mortgage.

I have heard of an equity release that my parents could do and this is something that could be a possibility.