Non dependant living with you

Bruce74378

Hi, I am in the process of applying for a mortgage through a broker and received a DIP (we have a little adverse credit, 2 defaults +2 years, 1 CCJ plus 4 years). Currently my Mother lives with us and is named on the mortgage of the current house we are selling (we all bought the property together when my father passed away). We are now looking to move to a more suitable property but as my Mum is past retirement age we are looking to transfer ownership to myself and my wife (by way of a gift) as we will need a mortgage over a longer term. As My mum will be living in the property but not on the mortgage, we are struggling to find a lender that will accept these circumstances. Is this a familiar situation for anyone and was a solution found? TIA

ACG

Yes, this is one of those things that is a problematic with specialist lenders. With high street lenders its easier but still not for all lenders. As ultimately it is not a true gift, it is a gift but with strings attached (ie mum can live in the property). That makes it a bit of a legal pain if the lender needs to repossess - although mum would probably have to sign a waiver form for the lender. 

Can the broker not include mum on the application and just have 3 applicants, one with zero income and get her age ignored. I feel like I have done this in the past, but cant recall who with off the top of my head.