joint mortgage with son

smedley1

I am retired and fortunately own my house. My son has a low paid job and is currently renting with a friend. We have talked about a joint mortgage to purchase a property and for him to share and charge a ' friend's' rent. Any experience and advice on such a proposition please?

floss2

You may get more help on the House buying & renting board

Snaggles

Please forgive an impertinent question, but how old are you? The reason I ask is that a mortgage that would take you past your 65th birthday is outside many high street lenders 'usual' criteria (not saying you wouldn't get one, but you might have to shop around a bit). It would also depend on the level of income you have jointly, and both of your outgoings.

It is becoming a more common way of people getting on the property ladder though.

tyllwyd

My question would be "what's in it for you?"

At the moment you own your own house outright, and I imagine you have a pension but not much savings (or else you would not be talking about a mortgage?) Would you receive any of the rental income? Would you contribute cash towards the mortgage?

My biggest worry would be what would happen if (say) your son lost his job and his friend did a runner without paying the rent. If your son fell behind on his repayments, I guess they would come after you for the money. If the worst came to the worst and the second house was in negative equity, could you face selling your own home to pay the debt.

Obviously that is a worst-case scenario, but I think you need to weigh up the pros and cons very carefully. You are at a time in your life when your income is most probably limited - I know that you want to help your son but is it in your interests to take on a risk like this?

gelbean

Hi

I was in the same position as your son, i was renting but wasnt earning enough to ever get a mortgage on my own so me and my mum went halves on the mortgage in name only. i had responsibility for paying the mortgage either myself or by getting a lodger in with me. a friend and eventually my partner moved in with me to cover her half of the rent and so far it has worked out really well. she has never had to make a payment out herself and when our fixed rate runs out i should be earning enough to take the mortgage on solely by myself.

i am really grateful to her as i would never have got on the property ladder without her, i think if you trust your son and his job and he is reliable there shouldnt be any problems but like the previous post says you just need to be wary of what would happen if he loses his job. i am fortunate enough that my mum would be able to cover me for a couple of months although i am sure this will never happen (she has been much better with money than me!!) but you would need to think about whether you would be willin and able to do this if need be.

i dont think you need to think - whats in it for you - with my mum it was because she loved me and wanted to help me and i will be eternally grateful and thankful to her for the opportunity she gave me!

hope some of this is some help

x

smedley1

Many thanks for this. I am just like your mum and would approach the situation as she did.Very helpful.

smedley1

Thanks for this. I am naturally cautious and will take account of your comments.

smedley1

I am just like one of the old Beatle tunes and so will have to shop around.Thanks.

smedley1

many thanks. I will look at the other forum.