Partial Mortgage on Parents House - possible??
Discussion
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?
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 said:
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?
It can't be done the way you are suggesting. You can't secure a mortgage against a property that you don't 100% own.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?
You could all be on the mortgage and deeds, but your parents would need to still be able to satisfy the maximum age criteria Eg if the maximum age at the end of the term is 70 and they are 60 now, thats going to result in a maximum term of 10 years.
I currently have a mortgage in process where a daughter lives with her Mother who owns the property. The Mother is selling the property to the daughter and gifting her the quity as the deposit and the daughters mortgage will redeem the Mothers remaining mortgage. You could do it this way but you have to beware that a lot of lenders will not accept the parents remaining in the property after completion particulary as there will never be vacant possession....
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