How to get an £80,000 mortgage with large deposit

TheTortieEllie

Hi,


If anyone can point me in the right direction it would really help me!


My mother is selling her existing paid off property (this will sell for about £220k). She wants to invest £200k in a house. She is 70 this year.



The new house would be in my name and is about £280k. I would need a mortgage for £80k ish. My income is £12-15k a year as a student.


Looking at this scenario, can you tell me the best/any mortgage companies or banks that will lend this amount to me - considering the massive deposit going in?


If they will not lend to me on my own, would my mum (being 70) be able to be included to boost the loan amount?


Many thanks for any pointers :beer:

AnotherJoe

When you say your mother wants to "invest" in a house, do you mean this literally?
If so, why would it be in your name? Normally with an investment you might look to profit from it or receive income, but if its in your name, e.g. you own it, I'm not seeing how that would work.



Is the intention to sell it after a while to make a gain on it? Who will live in it?
You? Her? Lodgers?


Is this her second house (or more) and she lives somewhere else?

TheTortieEllie

Hi Joe,


It is selling an existing house she had paid off so that me and her will live in it. The mortgage will be in my name.


Basically we both want to move to a better area. She can not manage a house on her own due to physical health so I would live there as well and be responsible for all repairs/costs etc.

AnotherJoe

That's why I asked the questions, depending what you are looking to accomplish, you'd get very different answers. Such as between "investing" and "jointly buying a house to live in" which are very different scenarios with different factors to consider.


When you say you are a student, what is the source of your income? Is it a PhD grant or similar? Or part time work?


No doubt you'll get some answers in the morning.

csgohan4

if your mother is staying with you and your mother is loaning the amount, the lender may not like this.


Also the age of your mother may limit the mortgage options

TheTortieEllie

Hi again Joe,




I work part time and I get a student grant to make up the income.




Thanks

Thrugelmir

TheTortieEllie wrote: »

My income is £12-15k a year as a student.

You'd fail on affordability tests to obtain a mortgage.

What is your mothers income?

TheTortieEllie

Hi CS,


This is what I am trying to work out . . I planned to do it on my own but seem to fall about £10-20k short of the amount I'd need to borrow.


This is only based on online calculators. I have booked some appointments with HS banks but wondered if any lenders were more genrous than others and/or whether someone independent might be better?

TheTortieEllie

Thrugelmir wrote: »

You'd fail on affordability tests to obtain a mortgage.

What is your mothers income?

My mum earns about £800 a month from her pension.


I work part time, with top up amounts from a student grant and some tax credits. Previously I was offered a lending amount of £65k on my part time wage with the Halifax.


I could take on additional work self-employed. How long may it take to factor that into the calculations?

middleclassbutpoor

If you have seen a house at £280k then offering £265k may be enough... Just consider that asking prices can be arrived at because people expect 'an offer'. This would not be too cheeky in most situations with it being around 5%.

I would speak to Estate Agents about the area you are looking and you never know in that you may find a motivated seller.

ritz55

I would recommend talking to a good broker. There are lenders who will go up to 6 times wages. Natwest will go to 4.85 times as well.