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How does being on my Dad's "buy to let" mortgage affect me?

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  • How does being on my Dad's "buy to let" mortgage affect me?

    Hi,

    My Dad is 70 and has just secured an offer on a house. He doesn't currently own a home(lives on a boat) so he needs me to go on the deed with him.

    He is putting 30% deposit down on the property.

    I am already a home owner and will be thinking of increasing my current mortgage in the next 6months. I wondered if being 50% owner on a "but to let" property would be a positive thing or a negative thing from a lending point of view.

    Obviously I'd have another property with equity in it, but would I also have more risk attached to me?

    I apologise if this would be better suited in a different forum but I'm desperate to find an answer an thought this looked like a good place to ask.

    Thanks,

    Joe

  • #2
    Re: How does being on my Dad's "buy to let" mortgage affect me?

    Some lenders will not like the fact that your committed to another mortgage. Others will be happy to ignore it as long as you can prove the property is 'self sufficient' i.e. the rental income covers the mortgage payments.

    In order to prove this some will ask to see the AST which you have in place or a letter from an ARLA registered letting agent stating the rental income. Some lenders ask to see proof of the rental income by seeing 6 months worth of payments on your bank statements.
    Worldwide Financial Planning is a specialist independent provider of Large mortgages.

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    • #3
      Re: How does being on my Dad's "buy to let" mortgage affect me?

      Most lenders won't mind. C&G could be a problem though.

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      • #4
        Re: How does being on my Dad's "buy to let" mortgage affect me?

        In my experience most lenders will happily ignore the buy to let Mortgage as long as it is self-sufficient, but mention it to your lender before making an application and they can let you know how it would potentially affect your application before you make it
        Best wishes

        Sean Hughes

        Independent Financial Adviser

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