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    • flourpower1
    • By flourpower1 18th Jun 17, 7:33 PM
    • 42Posts
    • 4Thanks
    could my family help us buy a property
    • #1
    • 18th Jun 17, 7:33 PM
    could my family help us buy a property 18th Jun 17 at 7:33 PM
    We have the deposit but because our pension is low we would not be offered a large enough mortgage. We can get 50% of what we need.

    We thought perhaps our children who are willing could obtain the balance of the mortgage. And we would be joint owners.

    We would be responsible for the repayments.

    What would make it easier is if there was an interest only mortgage.

    Health reasons are why we need to move.

    Currently in private rental, also on the housing register for 3 years and in the highest bracket apart from priority tenants.

    BTL mortgage is no longer an option because of stamp duty and the changes in taxation that they would have to pay.

    Anyone been in this situation or know of lenders who might consider us would be gratefully received.

    Tried a financial advisor but at 100 every time he comes up with an option works out expensive when the information is of no use.

    Thanks for reading
Page 1
    • ViolaLass
    • By ViolaLass 18th Jun 17, 8:31 PM
    • 5,306 Posts
    • 7,337 Thanks
    • #2
    • 18th Jun 17, 8:31 PM
    • #2
    • 18th Jun 17, 8:31 PM
    Any other family members would then have to pay 3% extra stamp duty when they got a second property. It would also affect their ability to get mortgages of their own.

    Or get a broker who only gets a fee if successful.
    • flourpower1
    • By flourpower1 18th Jun 17, 8:35 PM
    • 42 Posts
    • 4 Thanks
    • #3
    • 18th Jun 17, 8:35 PM
    • #3
    • 18th Jun 17, 8:35 PM
    Thanks violalass
    they already own their own property but any extra stamp duty they have to pay will be paid by us out of our savings.
    • Lilla D
    • By Lilla D 18th Jun 17, 8:48 PM
    • 327 Posts
    • 167 Thanks
    Lilla D
    • #4
    • 18th Jun 17, 8:48 PM
    • #4
    • 18th Jun 17, 8:48 PM
    Considering the various aspects, you'll need to see a broker. Most brokers don't charge 100 for every email / piece of advice, even if there will be a charge once a full application is submitted or an offer is issued. The broker fee is disclosed upfront, so you'll know exactly where you stand regardless of how many times you go back and forth discussing options.

    Re your situation though
    - if your children come onto the mortgage with you, then their affordability (including their own mortgage or rent, credit commitments, their children, etc.) will also be taken into account, so even if they earn well, they may not be able to help by much;
    - if they already have a residential mortgage, then this purchase will still attract the higher stamp duty, while if they are in rented themselves, then they'll be stung when they try to buy for themselves;
    - BTL is not an option anyway, since you'd be on the mortgage and move into the property - or if you meant it in a way that you'd give them the money and they'd buy a property for you, then it's also tricky as most lenders don't allow renting to family members;
    - there are plenty of lenders who allow borrowing beyond retirement age, but they all have their T&Cs, so to avoid wasting time, it's easiest if you speak to a broker.

    At this point I assume that you have already explored the idea of buying in a cheaper area, but given your preferences / commitments, you know where you wanted to live and what properties cost there.

    P.s. was a bit slow in posting and see that some of the points I mentioned are already covered, but hey ho
    I am a Mortgage Broker
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • flourpower1
    • By flourpower1 18th Jun 17, 10:33 PM
    • 42 Posts
    • 4 Thanks
    • #5
    • 18th Jun 17, 10:33 PM
    • #5
    • 18th Jun 17, 10:33 PM
    Thanks Lilla D

    Our pension is a net 13k and even if it's grossed up to what a working individual earns we would be allowed so little it's impossible to obtain a mortgage by ourselves.

    If there was a cheaper area not too far away we would consider it. I think our little town is probably the cheapest around.

    The problem is needing help because of physical health issues and needing family not too far away considering they work as well.

    I am probably clutching at straws.

    But thanks for your time. All replies are appreciated.
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