Son getting mortgage for parents to buy house

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Comments

  • iamugly
    iamugly Posts: 9 Forumite
    But if we pay the debts we also lose the benefits because its classified as deliberate deprivation of capital so we'd end up with no home and no money to live on
  • Mojisola
    Mojisola Posts: 35,557 Forumite
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    iamugly wrote: »
    But if we pay the debts we also lose the benefits because its classified as deliberate deprivation of capital so we'd end up with no home and no money to live on

    And what happens if you don't pay the debts?
  • iamugly
    iamugly Posts: 9 Forumite
    we are in an arrangement to pay so we do pay
  • aneary
    aneary Posts: 921 Forumite
    Having a roof over you head is more of a priority than any other debt.

    Get some advice from a professional of the best way to arrange to buy the house with your son lending you the extra amount.

    It may be some sort of deed, BTL whatever it is speak to a solicitor it will be worth the fee to ensure everything is set out correctly from the start. I personally wouldn't go to a mortgage broker for legal advise although you may need one to secure a mortgage.
  • getmore4less
    getmore4less Posts: 46,882 Forumite
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    Buy a cheaper place rather than the one you want.
  • iamugly
    iamugly Posts: 9 Forumite
    due to disability a house is out of the question, and bungalows cost more around here.
    The one we are looking at is around the lowest available
  • warby68
    warby68 Posts: 3,020 Forumite
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    What about flats?

    Sorry, much as I understand and applaud your son's wish to help his mum and dad, he is potentially harming his own future in a number of ways. If his relationship ends or his partner wishes them to pool resources for a joint property and he can't move on because he has a mortgage on your behalf then it wouldn't be good for him or his relationship.

    If he was wealthier and could simply gift or lend without borrowing himself it might be different but it doesn't sound like he has much behind him either.

    Where did you live before you moved into dad's house? Is that type of accommodation no longer an option?

    I suspect you'd have to buy together in some way to pool your deposit and his mortgage raising ability but even that would be uncertain given the presumably low value of the mortgage (some lenders not interested) and you as the joint owners not being good credit risks.

    I think you might have to lower your sights to what you can afford on your own, even if that is rented.
  • getmore4less
    getmore4less Posts: 46,882 Forumite
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    Bit of a catch22 which could have been simplified with some IHT planning.

    Can't get a mortgage, probably can't get a joint mortgage, can't gift it to son.

    What about the other 1/2 of the house you were living in can't they lend you the money.
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