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    • DianeM
    • By DianeM 6th Feb 18, 1:40 PM
    • 145Posts
    • 94Thanks
    DianeM
    How to get a mortgage for daughter
    • #1
    • 6th Feb 18, 1:40 PM
    How to get a mortgage for daughter 6th Feb 18 at 1:40 PM
    Glad for any info...
    Hi all,
    Daughter is wanting to buy a house but is 3 months off graduating.

    She has 20K saved but will not be able to provide payslips therefore myself and her dad are willing to take out a mortgage for her in the interim period (we have been mortgage free for 5 years) but of course are 51 and 53.

    Does anyone have any experience of guarantor mortgages?

    The plan would be to take out the mortgage then once she starts working she can take it over but I'm wondering about having to pay legal fees to change it to her name of if she can have it in her name or joint and once she has been 'vetted' the house and mortgage can be changed (again more fees) and we also don't necessarily want to be tied for 2 years.

    I really don't know where to start so I am after any information anyone can share.
Page 1
    • juniordoc
    • By juniordoc 6th Feb 18, 2:23 PM
    • 364 Posts
    • 286 Thanks
    juniordoc
    • #2
    • 6th Feb 18, 2:23 PM
    • #2
    • 6th Feb 18, 2:23 PM
    Is she working at all now? What is her plan for a job when she graduates? The process of finding a house to buy and purchasing it usually takes 2-3 months, it does sound like it'd be a lot easier to just wait.
    • YHM
    • By YHM 6th Feb 18, 2:23 PM
    • 516 Posts
    • 193 Thanks
    YHM
    • #3
    • 6th Feb 18, 2:23 PM
    • #3
    • 6th Feb 18, 2:23 PM
    Guarantor Mortgages in practice don't exist anymore.

    Yes there will be legal fees down the line to either sell her the property or transfer the equity into her sole name, dependant on how you structure the initial ownership of the property.

    I would obviously advocate the services of a solid mortgage broker that can guide you, as this could get tricky.
    I am a Mortgage Broker.

    You should note that this site doesn't check my status as a Mortgage Broker, 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
    • silvercar
    • By silvercar 6th Feb 18, 3:17 PM
    • 37,227 Posts
    • 156,855 Thanks
    silvercar
    • #4
    • 6th Feb 18, 3:17 PM
    • #4
    • 6th Feb 18, 3:17 PM
    If you buy it in your name you will clobbered for extra stamp duty and potential CGT in the future.

    You need to find a mortgage where she owns the property and you guarantee the mortgage.
    • kingstreet
    • By kingstreet 6th Feb 18, 3:46 PM
    • 33,381 Posts
    • 18,068 Thanks
    kingstreet
    • #5
    • 6th Feb 18, 3:46 PM
    • #5
    • 6th Feb 18, 3:46 PM
    Guarantor Mortgages in practice don't exist anymore
    Originally posted by YHM
    Joint borrower, sole proprietor is what we used to call a guarantor mortgage twenty-five years ago.
    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. Please do not send PMs asking for one-to-one-advice, or representation.
    • kingstreet
    • By kingstreet 6th Feb 18, 3:48 PM
    • 33,381 Posts
    • 18,068 Thanks
    kingstreet
    • #6
    • 6th Feb 18, 3:48 PM
    • #6
    • 6th Feb 18, 3:48 PM
    Glad for any info...
    Hi all,
    Daughter is wanting to buy a house but is 3 months off graduating.

    She has 20K saved but will not be able to provide payslips therefore myself and her dad are willing to take out a mortgage for her in the interim period (we have been mortgage free for 5 years) but of course are 51 and 53.

    Does anyone have any experience of guarantor mortgages?

    The plan would be to take out the mortgage then once she starts working she can take it over but I'm wondering about having to pay legal fees to change it to her name of if she can have it in her name or joint and once she has been 'vetted' the house and mortgage can be changed (again more fees) and we also don't necessarily want to be tied for 2 years.

    I really don't know where to start so I am after any information anyone can share.
    Originally posted by DianeM
    She can purchase the property in her sole name with a mortgage joint with you; what's known as 'joint borrower, sole proprietor'.

    This also helps her avoid stamp duty as you would be liable to the second property surcharge if either of you were named as owners with her.

    A broker will be able to assist you with the four or five options currently available.
    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. Please do not send PMs asking for one-to-one-advice, or representation.
    • silvercar
    • By silvercar 10th Feb 18, 3:26 PM
    • 37,227 Posts
    • 156,855 Thanks
    silvercar
    • #7
    • 10th Feb 18, 3:26 PM
    • #7
    • 10th Feb 18, 3:26 PM
    Joint borrower, sole proprietor is what we used to call a guarantor mortgage twenty-five years ago.
    Originally posted by kingstreet
    According to an article in The Times today, they still are called JBSP. The article reckons that there will be more available in the future, but there are only a few at the moment. It says Metro Bank, Family BS & Hinkley & Rugby BS; though do your own research.
    • kingstreet
    • By kingstreet 10th Feb 18, 3:39 PM
    • 33,381 Posts
    • 18,068 Thanks
    kingstreet
    • #8
    • 10th Feb 18, 3:39 PM
    • #8
    • 10th Feb 18, 3:39 PM
    There are more lenders than that now and 'JBSP' is the new name. I made it sound the other way round, sorry.

    In the good old days, a guarantor mortgage was just the same, more borrowers than there were owners, or JBSP for short.

    Same as...
    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. Please do not send PMs asking for one-to-one-advice, or representation.
    • dimbo61
    • By dimbo61 10th Feb 18, 4:42 PM
    • 9,880 Posts
    • 5,314 Thanks
    dimbo61
    • #9
    • 10th Feb 18, 4:42 PM
    • #9
    • 10th Feb 18, 4:42 PM
    Why not look at YBS offset mortgages for your daughter.
    She will need to be working but you can help by having savings accounts offsetting her mortgage
    • Thrugelmir
    • By Thrugelmir 10th Feb 18, 5:35 PM
    • 58,490 Posts
    • 51,851 Thanks
    Thrugelmir
    Daughter is wanting to buy a house but is 3 months off graduating.
    Originally posted by DianeM
    Isn't it wise to find a job before deciding where to buy a house?
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
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