My mum wants me to get a mortgage with her, advice please

elmorganx

So I’m 24 and I’ve never had a mortgage before. My mum wants me to go on a mortgage with her because she can not get one now due to her age and she has a CCJ for a parking fine ect, however she does have a really good credit rating and has never missed a payment. She wants to buy a house but she is short of the money as her house she’s selling is worth £170,000 and she needs the mortgage to afford to do the new house up as it needs loads of work doing, the new house she is buying is around the same price that her house is selling for. She is due a share of an inheritance payout of £50-60k but that will only come when my grandparents house has sold, which could be tomorrow, next week or next year ect. She has told me as soon as she gets the inheritance payout she will clear the mortgage completely. She is paying the full monthly mortgage payments and we will both be living there for the mean time until I go travelling. I have no idea with this, apart from knowing I will loose my first time buyer benefits in the future and may have to pay stamp duty if I go to get my own mortgage in the future. My mum has told me not to be put on the deeds but just keep on the mortgage. Is me doing this a good idea? Is this actually beneficial for me or just her? Will it be better for me in the future from having a mortgage? I’m scared that if something happens to her later down the line going to be left with this debt on my head, is there anything I can do to protect myself? 

elmorganx

Can I just add some information on the CCJ- she was given this due to her being unaware that her case of an unpaid parking ticket was even going to court and the court granted this as a result. She could pay this but she feels it’s the principle of it, having to pay so much for a parking fine. She was 9 minutes over on her parking ticket. Even with this on her credit file it’s still really really good b

p00hsticks

My advice - don't do it , it will end it tears.
There is really no plus side for you and potentially some real negatives.
Are the things that need doing to the new house so urgent that your mum cannot wait for her inheritance to come through ?
By all means pay your mother rent while you are living there to help her cover the mortgage payments , but you don't want to be named on the mortgage or the deeds

la531983

You wouldnt be able to get a first time buyer mortgage yourself if you did this, I would run a mile.

Debbie9009

I wouldn’t do this, I can’t think of anyway that it would benefit you, as you say you would loose first time buyer benefits.  The other thing to consider is what do you do, if you Mum can’t afford to pay off the mortgage so you remain on it and you then want to buy your own house, you would need to pay extra stamp duty, would you be happy if this happened? I know you are saying she would pay it of when the inheritance comes through but a lot could happen in the meantime. 

Is there any reason why your Mum couldn’t buy the house and then do it up when the inheritance comes through ? is it a case of she would like to do it up, but it is liveable as is ?

I know it can be hard to say no to your Mum, so are there any other family members who could maybe talk to her on your behalf and help point out the downsides to this ?

Edited to add I think it’s really unfair when parents ask their children to do things like this, they know most children will want to help their parents and will find it hard to say know, I feel it’s quite selfish.

Brie

I agree with the No camp.  What if she doesn't get the inheritance?  What if she marries and her new partner doesn't like you about?  What if you marry and then get divorced?  And then there's the FTB perks as others have mentioned.  Just say no.

If you want to loan her the money well possibly but even that is open to a whole lot of problems. 

MWT

elmorganx said:

So I’m 24 and I’ve never had a mortgage before. My mum wants me to go on a mortgage with her because she can not get one now due to her age and she has a CCJ for a parking fine ect,

How old is she? ... this feels like it is more of an age issue than just the single CCJ for a parking fine, and there are steps she could take to deal with the CCJ if she truly was not properly notified about it going to court, but just ignoring it and leaving it unpaid is not a sensible route..

In general though there is nothing positive for you in doing this, and plenty that is negative.

theoretica

Has your mum spoken to a good mortgage broker?  With proof of the funds to come (the will, house valuation etc) I would be surprised if she couldn't get funding, whether it is called a mortgage, or a bridging loan.  It would of course be at a cost, but better a clear upfront cost than trying to push the cost onto you and hide it.

Keep_pedalling

Have to agree with the others, do not do this. If she misses out because her inheritance takes time to come though there will be plenty of other houses available that she can buy mortgage free. 

Just tell her you have taken advice and it will cost you your first time buyers status so you can’t do it.

elmorganx

Hi, so the house she wants to buy was originally up for a lot higher but it’s not sold in x amount of years and so they’ve kept dropping the price. The house is on the market for £219,000 but my mum has gone in with a lower offer and it’s been accepted. So the house it’s self needs a lot of work, the area is amazing and she’s been told that once the house is done up it will probably sell for about £320,000. She wants me to borrow £30,000 and then she will put the £170k from her house sale straight to the house plus about 10 grand of the mortgage and the rest will be used for solicitar fee’s etc and fixing the main bits wrong with the house. The house has damp upstairs needs lots of work doing bits the garden and needs modernising. She is paying for a surveyor (I think this is it) to go and have a look at the house which is costing money before hand due to she thinks there’s issues with the roof and they’re may be a crack running down the side of the house. Our house sold within a week and she loves this house, she’s wanting to buy it to do it up and sell in the future to make a profit so I can see the reasons why she wants to for me and my sisters inheritance in the future. The reason she needs the money is because the house is more than she’s selling I think she’s offered £180k for it and that’s been accepted so the mortgage would only be leaving about £15k-20k to do the main bits of the house and then when she gets the inheritance she told me she will pay the mortgage straight off and then use the rest of her inheritance to do the rest of the house up and then sell. She has also told me for doing this she will give me a lump sum of the money when the house sells, however this has not been put in writing. I will be paying my mum rent in the mean time as I live with her for a few months and then I want to go travelling myself so I thought it would be good for when I return knowing I would have some money to fall back on. Essentially it’s my mums house and she’s paying for it all and I’d just be on the mortgage. My worries lie with if anything happens to my mum I’m left with the mortgage, it’s going to have an effect on me in the future when I want to get one for myself. The mortgage broker has said that this would be beneficial for me anyway as I’d already have been on the property market but I just don’t know. I feel really bad and guilty for wanting to say no, but if there were benefits for me doing this then it’s something I’d consider 

elmorganx

Just to add, there’s a will in place and it’s being split between all 5 of them. My grandparents owned the property and once it’s sold they will all receive around £50k if not more. It’s just my aunty is having trouble selling the house as people are interested and then don’t place an offer but it’s still on the market. We have had to go through a mortgage broker due to me not having the best credit file and because my mums putting a lump sum of £170k (a lot down) most mortgages didn’t want to support it. She has also looked at the option of a bridging loan which would cost her a fortune but has considered this. I just feel really guilty and I feel with the lack of professional advice I feel I’m jumping into something without having the protection of knowledge or whether anything will go wrong