2n home and new mortgage?

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I'm considering urchasing a second home for my mum who is returning from Yorkshire to Durham.

She is looking for somewhere to rent long term and If I could I would like to buy a second home and rent it to her.

I'm just wondering how to see how much I can afford?

current equity in my home is about £40,000. We would be looking at a small home valued about £75,000

Can anyone give some advice?

Thanks

PhilCCFC

Hi,

Royal Bank of Scotland will allow you to purchase a second residential mortgage if a family member is to live in it, if you can afford both mortgage balances on their income multiples, which off hand I believe are 3.5 times main applicant plus 1 of a second or 2.75 times joint income.

For example if your residential mortgage was £50,000 and you were looking to borrow £50,000 for your new purchase then your income, sole or joint would need to cover £100,000 using their multiples.

You would however, not mention that you were charging your mother rent, as they do not allow renting to family members. But if you were to say you were buying the house for her to live in as it is closer to where you live then they would have no problem with that.

Good luck!