Right to Buy - Purchasing joint with Mother

DistrictLine722

Hi,

My Mother is a tenant in a Right to Buy house. She recently tried to get a mortgage on the house with my step Dad, but due to his terrible credit rating it isn't possible. She has clean credit, but has a low income. Only earns £9.5k, and needs £43,800 for the mortgage.

So I was thinking of buying it with her. I'm high income, and don't plan on using my first time buyer discounts as I want to invest in property within the next few years in lieu of £400k of mortgage debt.

I was raised in the house, and moved out 2 years ago, but I am still listed as an occupant.

* Would I be able to jointly mortgage the house with her?
* Will my step Dad need to be removed from the tenancy, or can he be ignored for the sake of buying it and just live with us?

Side note, I was quite surprised that she was rejected for a mortgage. £9k x 4.5 = £42,750, and she has an effective deposit of £65k (60%), so the risk to lenders is very minimal... Any ideas about this?

McKneff

By saying you are an occupant when you clearly are not,
You would be committing fraud...

Pixie5740

DistrictLine722 wrote: »

Hi,

My Mother is a tenant in a Right to Buy house. She recently tried to get a mortgage on the house with my step Dad, but due to his terrible credit rating it isn't possible. She has clean credit, but has a low income. Only earns £9.5k, and needs £43,800 for the mortgage.

So I was thinking of buying it with her. I'm high income, and don't plan on using my first time buyer discounts as I want to invest in property within the next few years in lieu of £400k of mortgage debt.

I was raised in the house, and moved out 2 years ago, but I am still listed as an occupant.

* Would I be able to jointly mortgage the house with her?
* Will my step Dad need to be removed from the tenancy, or can he be ignored for the sake of buying it and just live with us?

Side note, I was quite surprised that she was rejected for a mortgage. £9k x 4.5 = £42,750, and she has an effective deposit of £65k (60%), so the risk to lenders is very minimal... Any ideas about this?

You don't live there therefore you're not an occupant so you are not eligible to make a joint RTB application with your mother. Even if you could jointly purchase this property you don't get to choose when you use your FTB benefits.

It's not really surprising that someone with an annual income of £9k was rejected for a mortgage. It's not a simple case of mortgage multiples especially for low earners because after taking into account the cost of living they don't have much in the way of disposable income.

foxy-stoat

If you are a high earner then see if you can gift a load of money to your Mum so she can get the benefits of the discount and buy the property.