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Mum and Dads new house advice pls

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  • Mum and Dads new house advice pls

    Please could you tell me of a Mortgage product with an interest only payment and a LTV of 80%
    Here is the rub.
    I would like to purchase a House for £245k My Mum and Dad will be moving in with me, as my Dad has been diagnosed with cancer and my mother’s mobility is not what it used to be.
    Basically they are going to sell their house which would leave £50k to place as a deposit on this new house. Therefore I need a mortgage of £195k say 79%.
    However I already have a mortgage myself and would like to just rent mine out to cover my existing mortgage and go toward some of the new monthly payment.
    Cashflow on a month to month basis is not a problem and the figures do add up.(In fact if I rented mine out I will be better off per month)
    Would I be able to get this 2nd mortgage and if so does anyone know of a company doing this.
    (Stamp duty, fees are not really an issue).
    Would really be grateful if any of you experts out there could suggest something.
    Cheers
    Tru
    x

  • #2
    Re: Mum and Dads new house advice pls

    If you were renting your property out you would need to change it to a buy to let or obtain consent to let from your existing lender to let this out. Any other lender would be happy to lend to you with consent to let on your existing property (subject to credit checks and affordability of course)
    Anthony
    Compare the Mortgage Market
    http://www.comparethemortgagemarket.com

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    • #3
      Re: Mum and Dads new house advice pls

      Sounds like you have a plan Tru, it is very easy to do, just ask the thousands of people who did it in the last few years because they couldn't sell their properties due to the current market conditions.

      It really depends who your current lender is as to whether it is better to obtain consent to let or change to a buy to let mortgage for the following reasons:

      1) Obtain consent to let generally incurs either an administration fee or an increase in interest rate (up to 2% increase !!!) or additional conditions such as no LHA tenants or indeed all 3

      2) Buy to let mortgages up to 80% are very limited and have enormous set up fees e.g. the mortgage works charge up to 3.5% of the loan as a set up fee. Some lenders in addition ask you to prove certain income levels in addition to rental multiples.

      So you see that you need to work out the amounts you need to pay carefully to see which route suits you best

      Best of luck and I hope your father is better soon
      Adam Long

      www.quickhomeseller.co.uk

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