Helping Parent with House- Is this even possible

slideby

Hi all

My mum and her partner are looking at moving closer, and would have c 80% of the house price available. Would it be possible for me to get the mortgage on the final 20% given I wouldn't be living there, and if so, would it be a different product or a normal mortgage? I do currently have a mortgage which i am guessing is relevant.

Thanks in advance

Mark

ACG

It can potentially be done. 
But there are various hurdles. 

If you all want to own the property, then chances are you need to all go on the mortgage. 
If mum and partner are happy to gift the deposit to you and not be on the mortgage, there could still be problems. 

100% one for a broker as it wont be simple and depends on what you all want. 

silvercar

If you earn enough to cover your outgoings plus the new mortgage it is possible. A very few lenders offer a mortgage where there are say 2 borrowers and only one owning the property, it’s called a joint borrower sole proprietor mortgage.

We are doing this at the moment to help our son buy his first property, as his income alone wouldn’t be sufficient, through Barclays. There are a couple of other mainstream lenders that do this.

K_S

slideby said:

My mum and her partner are looking at moving closer, and would have c 80% of the house price available. Would it be possible for me to get the mortgage on the final 20% given I wouldn't be living there, and if so, would it be a different product or a normal mortgage? I do currently have a mortgage which i am guessing is relevant.

@slideby As mentioned above, one of the products that may meet your needs is called a Joint Borrower Sole Proprietor mortgage where you will be a borrower (along with your mum and her partner) but will not be on the deeds. You will be equally responsible for the mortgage and any late/missed payments on the mortgage will impact your credit history. The main hurdle for this is being able to afford (as per the lender calculators) both your current mortgage (plus any other financial commitments) and the new mortgage.

Barclays and Skipton are likely to be the cheapest JBSP offerings in the market, it may be worth playing around with their lender affordability calculators to see if it's viable or speaking to a mortgage broker.
https://resources.barclays.co.uk/mortgage-calculators/residential-affordability?
https://www.skipton-intermediaries.co.uk/tools-and-support/calculators/affordability-calculator 

Alternatively, a couple of other options may be -
- for you to go on the mortgage as well (this may mean an extra 3% stamp duty surcharge)
- raising the 20% on your own property, loaning it to your mum and securing it against the property