New morgage advice needed

moonrakermagpie

Hi there,

I would like to ask the advice of anyone who could give it??

I am looking at purchasing a house for my daughter to live in, (with her daughter), she is a single working mum and is privately renting at the moment.

She pays £600 pounds a month at present and would put this into the new property, I would put in the rest each month to top up the morgage.

Around our catchment area, a two / three bedroomed property is around £170.000.

I had a brief meeting with a morgage broker and have been advised that I could raise around £170.000, based on my income plus my daughters £600 per month.

Could I ask if anyone could advise me, on how I can reduce the monthly payments to as little as possible, even if this means extending the morgage to 25 or more years, I am 49 years old by the way.

Any advice on how to save as much as possible would obviously be more that welcome.:D

Cheers Steve

posh*spice

Hi Steve,

Are you sure you should be buying a house at this time? Maybe you'd be better renting for say 6 months? House prices could fall quite abit yet? But probably wont rise in the next 6 months - just a thought.;) That would help you save quite abit!

moonrakermagpie

Thank you for that "posh", how is David and the Kids????

I see what you are saying, and have just been advised that poeple are making silly offers and having them accepted!!!

That said, I would like to get the finances in place first, so I know what price of property to go for!!!

Many thanks

"poor**spice"

Steve

BACKFRMTHEEDGE

Hi

Lots of mortgage advisors hang out on the mortgage & endowments board. I'm sure they could help you.:money::D

alfiesmum

If your daughter is in receipt of housing benefit in her present rented accommodation, then don't automatically think that she will get housing benefit when moving to your house. The council will most likely look at this as what is called a 'contrived tenancy', as you are a immediate member of her family, and buying the house with the purpose of her living in it. They would then not allow her to claim housing benefit on it, and you may have problems reaching the mortgage payments.

Before I get shot down by the way I'm not assuming that just because you daughter is a single parent that she must be claiming- I was a single parent for 10 years and never had less than 3 jobs for 8 of those years!. I just thought it was worth mentioning, as it may be of relevance in some circumstances. I also thought that if she's renting at the moment and affording £600 a month from her wages, then she'd be buying it herself.

Hope that helps (hope it makes sense too!).

alfiesmum
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