Partial Mortgage on Parents House - possible??

[crostonian]

Going to speak to my existing mortgage lender next week but wondered if anyone in the know had any suggestions.

Current situation is I have 50/50 interest only/repayment mortgage on the house I live in, approx 65% of the properties value is mortgaged.

I'm looking to move out and live in my parents house and then rent out my existing property. The rent would be approx £400 more than my current mortgage so I'd be looking to change to a 100% repayment mortgage.

Now where it gets complicated is that I'd like to mortgage a portion of the value of my parents house. It's worth around £600K and they have about £25k owing on it. My ideal would be to take out a mortgage against their property for around £150k, giving them £100k and giving me £50k to carry out work on the property to adapt it to my needs.

The discussion about whether I should or shouldn't be moving back to the parental home is irrelevant, what I'm wondering is will my plan be laughed out straight away or is it doable. I realise there are loads of determining factors which could swing it either way but in essence is it something that could be done?

[crostonian]

Yes was thinking this as I would have to be on the deeds of their house, would it be possible to have shared ownership?

[crostonian]

The reason for wanting to get a mortgage for around £150k on their house was to give them some capital as this is an alternative to them downsizing.

[crostonian]

Crafty_ said:

If they don't urgently need the 100k, why don't you pay them directly, you don't pay interest, they get some income.

Yes that could be worth discussing as they don't need a lump sum as much more a better income.

[crostonian]

That's interesting, was thinking the answer would be something along these lines, will see what my existing lenders have to say anyway but thanks for the advice.