Options ??

BedNBreakfast

Me and my partner , private renting (Scotland) for nearly 4 years , both of us with a poor credit files, however her father who is financially sound offered to take on a mortgage for her . He was going to pay the deposit and we would make the payments and live there, but we are not sure this is possible ??? Her father owns his home but has never had a mortgage , as the house he owns he bought outright.

I know there are buy to let mortgages but i think these would work out more expensive and would probably work out about the same as we pay rent wise. , If he gets a mortgage would he have to state he was going to live there ? is there any other sort of mortgages available ??
I know there is joint mortgages father/daughter type , but i dont think she has a good enough credit record to even be considered , maybe a guarantor mortgage might work ?. 

Thanks in advance

MovingForwards

What is so bad in your credit history that prevents you speaking with an adverse credit whole of market mortgage broker?

BedNBreakfast

I got something from an online home shopping catalogue a few years back and never paid it , they registered a third party fraud marker against my name , i cant even open a savings account !

MovingForwards

How many is a few years? It should drop off after 6.

How about your OHs credit history?

If your OHs dad wants to get a buy to let he will need 25% deposit, plus the extra stamp duty due to already owning a property. It's a limited lender market if it's being rented to family.

Shared dad/daughter mortgage would also require the higher stamp duty, term may be restricted due to his age which will result in higher payments.

OHs dad has the option of having a mortgage on his property, to free up cash, lend it to you /OH and have a private mortgage registered on the title deeds.

ACG

Fraud marker or default? 
Fraud marker for a catalogue seems harsh, unless you literally ran up a debt and never made any payments, I suppose that would make a little more sense?

Your partner and her dad could potentially get a joint mortgage (joint borrower, sole proprietor), that would be a residential mortgage. Options are limited but might be cheaper than a BTL, otherwise it would need to be a regulated BTL but that would come with higher stamp duty implications. 

BedNBreakfast

Thanks for the replies ,
Not a big bill was only aboot £350 its exactly the same as an article in the paper recently that cost a girl her job. Unfortunately i cant post a link as im a new member . 

But if my partners credit file is poor also , this would surely affect her chances of a joint mortgage . 

So by my understanding , basically there are only the two options above ?? Joint mortgage or the regulated family buy to let ? 

Would her dad need to be classed as living there ? 

ACG

No.
If the BTL he wouldnt actually be allowed.

BedNBreakfast

ACG said:

No.
If the BTL he wouldnt actually be allowed.

What about the joint mortgage , if thats still a viable option with her poor credit ?

[Deleted User]

BedNBreakfast said:

What about the joint mortgage , if thats still a viable option with her poor credit ?

Depends on how bad it is.  There arent many lenders that do Joint Borrower Sole Owner so the options are reduced somewhat but it might sneak through if Dad's credit record is top notch as it will raise the overall scoring on the case.  

[Deleted User]

MovingForwards said:

Shared dad/daughter mortgage would also require the higher stamp duty, term may be restricted due to his age which will result in higher payments.

It's LBTT in Scotland rather than SDLT, and the additional dwelling supplement is 4%.

BedNBreakfast

Come across this ...... Could this be an option ? 

"......Want to buy a property with the intention of renting it out to family, then the cheapest option for you would be a second residential mortgage where you declare a family member will live there – another option is a regulated buy-to-let mortgage"