Low-LTV (£125-150 k) mortgage with 75-y-o parent – lender options?

TempUsername0307

Key facts

• Purchase price: £625 k

• Equity from sale: ≈ £567 k

• Loan needed: £100-150 k (≈ 20-24 % LTV)

• Refurb budget: up to £60 k (kept from equity)

Applicant 1 (me)

• Age 41, trainee surveyor (RICS)

• Salary down to £28 k from £90k as retraining → rising to ~£50 k in Aug 2026 when I qualify 

• Clean credit (never had credit card, only commitment is £30 pcm postgraduate student loan) current Halifax mortgage 6.01 %, £1400 pcm - never defaulted 

Applicant 2 (dad)

• Age 75, retired

• Income £38 k p.a. (pension); savings £150 k

• Happy to be joint borrower / guarantor and will be on Title 

What I need guidance on

1. Lenders that accept :Sole-Borrower-Joint-Proprietor (or similar) with a 75-year-old income-contributing parent / accept parent as a guarantor.

2. Whether any lender will disregard Dad’s income and lend on my £28 k salary given the low LTV.

3. Impact (if any) on rates between borrowing £100 k vs £150 k at this LTV band.

I can cover repayments even on current income. Any broker or first-hand insights on lenders or products that fit would be much appreciated.

Thanks!

TempUsername0307

Halifax have said they’d only lend my £38,000 (my current mortgage with them is £220,000 @6.01% which I have never defaulted on despite having my reduced/lower earnings for two years).

Keep_pedalling

Is your father planning to live with you? Does he own his own property? 

silvercar

If ‘Dad’ is going on the title, he will need to be a joint borrower. SBJM are for situations where the parent is not going on the title and not living in the property.

is ‘Dad’ going to be living in the property with you? If not, then having his own property elsewhere will mean a higher rate of SDLT. If he is moving in with you, then he needs to be selling his current home to avoid the higher SDLT.

silvercar

@TempUsername0307, I’ll move this to the mortgage board.

grumpy_codger

With £150K of savings (and a good pension) why do you need a mortgage?

TempUsername0307

My Dad will indeed live with me @silvercar and @keep_pedalling

TempUsername0307

My Dad won’t own another home - he is selling it @silvercar and @Keep_pedalling

silvercar

If Dad is going on the title deeds, he will need to be on the mortgage. The answer may be to get a mortgage for only 5 years, given his age and remortgage when your income is sufficient to take on the mortgage alone. 

You may want to consider some inheritance tax planning. I don’t know whether it would save IHT if Dad didn’t go on the deeds and became a guarantor or joint borrower instead. Depends on family dynamics and his total assets as to whether this is something to look at.

kingstreet

There is no longer a more owners than borrowers option. HSBC ended it several years ago.

Hoenir

Why doesn't your father simply lend you a £150k?  That you repay in accordance with a properly drawn up legal agreement. 

Halifax have said they’d only lend my £38,000 (my current mortgage with them is £220,000 @6.01% which I have never defaulted on despite having my reduced/lower earnings for two years).

What you have borrowed previously has no bearing. As long as the debt is repaid to schedule then the lender has no grounds to call in the loan. You haven't breached the terms and conditions. Very different to a new application. Where you need to meet current underwriting criteria.