First time buyer

jonney92

Hello,
First of all hope everyone is keeping safe out there! 
I am looking to buy my first property and get on the property ladder house is around £190k. On my own there would be no way of getting a mortgage for this amount so my parents said they would own 50% and pay that in full then I take a mortgage on the remainder. 
After speaking to a few banks they said they would need to be on the mortgage if they own half, but HSBC said they can be on the deeds and not the mortgage which is good.

Does anyone know of any other options or routes? As didnt really want my parents on the mortgage.

Thanks

sjc93

Have you had a look at the springboard/family mortgages that Barclays and other high street lenders have out there at the moment?

jonney92

sjc93 said:

Have you had a look at the springboard/family mortgages that Barclays and other high street lenders have out there at the moment?

Hello SJC93, I haven't actually thank you for that advise I have heard of them before but they totally passed my mind.

greatcrested

Do your parents own their own property? If so, they would be buying a 2nd property, so SDLT would be 3% higher.

An alternative  might be for them to loan you the 50% cash you need, for you to own the property in your sole name with your own mortgage, and for them to place a 2nd Charge on the property. Your mortgage lender would have the 1st Charge, so first dibs on any sale value if you went into arrears and the property had to be repossessed and sold, and your parents would get their money back from whatever was left over after the mortgage company was paid off.

jonney92

greatcrested said:

Do your parents own their own property? If so, they would be buying a 2nd property, so SDLT would be 3% higher.

An alternative  might be for them to loan you the 50% cash you need, for you to own the property in your sole name with your own mortgage, and for them to place a 2nd Charge on the property. Your mortgage lender would have the 1st Charge, so first dibs on any sale value if you went into arrears and the property had to be repossessed and sold, and your parents would get their money back from whatever was left over after the mortgage company was paid off.

Hello, sorry for the slow reply.

The house we live in is in my dads name, so my one we would put my mum on the deeds as she would be a first time buyer. 

Chetnick

Sorry to tell you that wont work...

LBTT10062 - Transactions involving spouses/civil partners/cohabitants and their dependent children

Married couples, those in a civil partnership and cohabitants (those living together as though married, including same-sex cohabitants), along with their dependent children (children under 16, including adopted children), are treated as one economic unit for the purposes of determining how many properties a buyer owns at the end of the day that is the effective date of the transaction.

greatcrested

As chetnick says, your parents (as a single married unit) would be buying a 2nd property so you and they would be liable for the additional 3% SDLT.