Mortgage query

Grinch6912

Hi
Im currently trying to sell my house but it’s very slow, with no offers. A property we’d like to buy has come on market. We’ve enough savings for 60k deposit but property will be sold before we sell. My son has offered to buy as 1st time buyer to secure it.

can he use our deposit and we’ll just buy it off him once we’ve sold? We’d have enough to pay mortgage off immediately. I’m guessing, it being the U.K., that there’s a load of restrictions/penalties. Does anyone know?
thanks

MX5huggy

Nothing in particular stopping you doing this but it’s a bit of mess. 

Does you son have a Lifetime ISA (or help to buy) that can only be used on his first ever property purchase?

If you’re not getting any interest in your property then it is over priced. 

A second mortgage or bridging loan might be a better option 

https://www.moneysavingexpert.com/loans/bridge-loans/

Albermarle

Grinch6912 said:

Hi
Im currently trying to sell my house but it’s very slow, with no offers. A property we’d like to buy has come on market. We’ve enough savings for 60k deposit but property will be sold before we sell. My son has offered to buy as 1st time buyer to secure it.

can he use our deposit and we’ll just buy it off him once we’ve sold? We’d have enough to pay mortgage off immediately. I’m guessing, it being the U.K., that there’s a load of restrictions/penalties. Does anyone know?
thanks

If you have ever lived in another country, you will have found these type of items are often worse, with even more levels of  bureaucracy !

One probable issue is two sets of conveyancing costs and stamp duty, when he buys and then sells to you.
Then what if there is something wrong with the house, or alternatively he decides he likes it and wants to stay ?
Family and money do not always mix well.

Maybe easier just to knock 10% off the asking price for your current house. 

Qyburn

Can you increase borrowing on the existing house, and buy the new one with cash?  That's what we did.

Aretnap

Two lots of conveyancing fees, two lots of stamp duty, and your son loses the opportunity to pay the reduced rate of stamp duty for first time buyers when he does eventually buy a house, are some of the obvious issues. 

Rather than add all those extra costs to the process, you might as well just drop the asking price for your house and sell it more quickly. If you are not getting any interest in it then there a good chance that you are going to have to drop the asking price dinner or later anyway.

Angelica123

The cost of doing that both in terms of fees (2xconveyancing/stamp duty) and the loss of first time buyer benefits for your son, does not make it worth it. Also your son would have to pass affordability checks for the mortgage. 

If you are not getting interest in your own house, then you should review why. Are you getting viewings? Any feedback you are getting? Ultimately price will factor and you are unlikely to progress without dropping the asking price. 

MSE_ForumTeam5

We've moved this to the mortgages board