Mortgage help please - my family is gonna get made homeless

Smissah

I don’t even know where to start because I’m torn, angry and confused right now.

It seems Brexit has things happen faster; our landlord wants to sell the house we (parents and siblings) have been living in for over 20 years.

My parents have been advised by an uncle to buy it so in a last minute attempt they’re trying to put things together.

I’ve been asked/told to take out a loan of £15k to help towards deposit but my girlfriend and I wanna marry and buy a place within the next two years. I don’t earn a lot and we’ve been steadily saving the year or so that I’ve been working since graduating.

Should I go for the loan, will it effect my chances of getting a loan when I come to get a place in 2 years time?

I’m really between a rock and a hard place because I’ve upset my parents.

I’d appreciate if you could help?

Many thanks


Stephen

Update:




They’re planning to ask the landlord to lower the price of the house on paper so we can get the loan from the bank with the salaries we’ve been able to combine. It doesn’t look like we can get a lot from the bank. So we needed 40£k more to give to the landlord as cash (for the rest of the actual amount of the house). Thanks for the messages so far

I just wanted to add that while we might not be homeless, it’ll displace the whole family. Commuting to work/finding new work. My dad is also a major hoarder so the notion of motion is an immense challenge. They are both all and I doubt my mum would get any better work. I would also have to get a new job. The way it’s all panned out makes it look like I’m shooting everyone in the foot.

This loan shouldn’t affect my first-time buyer's perks

EDIT: can anyone give reasons why I should? even though I probably won't go it because I'll upset my girlfriend of 9 years.

SpiderLegs

just because the LL sells the house doesn’t mean you will be homeless.

Why do your parents want to buy it?
If you get evicted why not go rent somewhere else?
How would this 15k loan get paid off?

Yes of course it will impact on your ability to get a mortgage.

It all sounds like stupid idea tbh

[Deleted User]

There's dozens of reasons not to do this, not that it even sounds possible.

Look for a new rental place. Homelessness sounds incredibly unlikely, unless that is your choice.

ScottishSaver14

I would advise against being manipulated by your family into being financially tied to this house. You have your future to think of, and this rental was always your parents decision.

I'd agree with the other posters about finding a new rental place. Or perhaps the uncle who is full of good advice could help your parents.

Additionally, a loan is regarded skeptically by lenders as a source of deposit, so it may be a moot point.

silvercar

It seems Brexit has things happen faster; our landlord wants to sell the house we (parents and siblings) have been living in for over 20 years.

They need to check their tenancy, having lived there so long they may be on a more secure tenancy than an AST.

silvercar

Should I go for the loan, will it effect my chances of getting a loan when I come to get a place in 2 years time?

It will impact on the size of your own deposit and therefore the rate you can get on a mortgage. It may even impact on your ability to get a mortgage.

grumiofoundation

Don't forget as well gaining an interest in the property will mean you are not just no longer a first time buyer when you want to buy in the future but would be buying a second home (extra 3% SDLT). For example stamp duty on a 250k property goes from £0 to £10,000.

Smodlet

It sounds like the worst possible idea for all the reasons given above and because you will be tied to your family, possibly for the rest of your life given how hard it can be for FTBs to get mortgages at all, let alone when they already have large amounts of debt. Perhaps this is their agenda, only you know that.

I would advise you to stick to your guns but it is your choice. Your parents do not have to leave just because the house is sold. If the buyer wants vacant possession your landlord (LL) will have to go to court to get a possession order, which takes months. They can find somewhere else to rent. So can you, if you want to, away from them...

Mojisola

Smissah wrote: »

My parents have been advised by an uncle to buy it so in a last minute attempt they’re trying to put things together.

I’ve been asked/told to take out a loan of £15k to help towards deposit

It's very unlikely that a mortgage provider would accept a loan as part of their deposit so you would have to gift it unconditionally to them - leaving you to repay the debt with nothing to show for it.

Caz3121

Smissah wrote: »

My parents have been advised by an uncle to buy it

they need to tell the uncle that, nice idea but they don't have the deposit to be able to do that
are they/you looking at other rentals?

SouthLondonUser

grumiofoundation wrote: »

Don't forget as well gaining an interest in the property will mean you are not just no longer a first time buyer when you want to buy in the future but would be buying a second home (extra 3% SDLT)..

Don't confuse the OP with wrong information!

Assuming we are talking about England, the 3% extra stamp duty applies if you end up owning more than one property, not if you owned one in the past! You can buy and sell 10 properties one after the other, and never pay the 3% extra, as long as you own one only at each moment in time.

There are certain advantages that apply to first-time buyers only, but that's a different thing to the 3% extra.

It's all explained very clearly on the official website

https://www.gov.uk/stamp-duty-land-tax/residential-property-rates