Parents offering to take out a mortgage for me

blondie4281

I’m in the position where my marriage is ending, I have 4 young children, one with disabilities and home schooled. I work 3 part days, and am on benefits now I’m a single parent. My marital home is being sold and although I will have £70k in equity, I’m not eligible for a mortgage. 

My parents would prefer I purchase a part buy part rent to keep on the housing ladder, but I’m about £70k short and would need a mortgage. They are retired and own their home outright and would like to take out a mortgage, the monthly payment I would pay to them. 

Is this feasible??

Nb - the sale of my current home is complicated but definitely going ahead. 

mortgagetakingages

I think this may be tricky unless your are willing to gift you the 70k and then you unofficially repay them... something for a mortgage advisor to comment on. 

MovingForwards

I'm not sure your plan would work with shared ownership due to the way they work. Cash purchasers are very rarely allowed and there are strict rules for it.

@haras_n0sirrah is a resident broker on MSE who specialises in S/O property, perhaps her input would be invaluable.

Thrugelmir

Why is the marital home being sold?

haras_n0sirrah

As moving forward says the housing associations can be difficult about cash buyers and would need a good reason for being cash. If you will be paying another mortgage this would need to be declared as an outgoing and you would need to pass the affordability assessment 

getmore4less

You can get mortgage where the borrower is not an owner but probably not combined with any shared ownership arrangement. 

Age and affordability will also be an issue and if you pay there are tax implications.