Mortgage to pay loan from parents? Bridging loan?

wadeowl

Hello! My parents are currently selling their house and plan to significantly down size, they have offered me money to borrow to go to auction. As the turn around for auctions is often a lot quicker than mortgages can be arranged. 

Is it then possible for me to get a mortgage in order to pay my parents back? 

Thank you in advance 

MovingForwards

Usually there's a 6 month ownership requirement before lenders will remortgage a property. If your parents are happy to wait to be repaid, then you can borrow the money from them.

A bridging loan is totally different and wouldn't be recommended for that length of time.

MaryNB

Be careful with an auction property. If they're up for auction there's usually a reason for it e.g. structural issues, short lease. Often they can be reasons that make the property unmortgageable and is why they're being auctioned off in the first place. 

wadeowl

MaryNB said:

Be careful with an auction property. If they're up for auction there's usually a reason for it e.g. structural issues, short lease. Often they can be reasons that make the property unmortgageable and is why they're being auctioned off in the first place. 

Thank you. I do plan to do plenty of due diligence to ensure I can avoid getting into a sticky situation. 

wadeowl

MovingForwards said:

Usually there's a 6 month ownership requirement before lenders will remortgage a property. If your parents are happy to wait to be repaid, then you can borrow the money from them.

A bridging loan is totally different and wouldn't be recommended for that length of time.

Thank you. And a mortgage company will be happy for a mortgage to be paid directly to my parents?

amnblog

You can get day one re-mortgages with certain lenders but based on the purchase price or value (whichever is lower).

The mortgage funds will go into your Solicitors account in the first instance.