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Buying a house - renting to son pending mortgage acceptance

(4 Posts)
ContraryAndHairy Sat 14-Sep-13 19:16:19

Hmmm. Lots to think about. I would buy it outright with no mortgage from a trust fund - so the trust would own it rather than me.

LIZS Sat 14-Sep-13 10:47:26

If he has a property with negative equity he is unlikely to be able to get an additional mortgage until he sells. Why can't he live in his existing property ? Does he/dp have stable work as there may be limitations should they need to claim HB in the future due to renting from family, plus the property would be seen as an asset.

financialwizard Sat 14-Sep-13 10:43:24

Only you can answer whether it is a good idea or not but if you have a mortgage already your income will have to be enough to cover the monthly repayment on your mortgage and the new mortgage, or maybe the full amount of the mortgage will be taken into consideration when making the application. It really depends on the lender.

However, it is possible. I would suggest seeing a good mortgage broker though.

ContraryAndHairy Sat 14-Sep-13 10:22:17

Hi. My son has just been turned down for a mortgage as he has a CCJ against him - he has to waitb18 months for this to end before reapplying.

He already has a mortgage on a property he can't sell as in negative equity so he is renting that out.

He currently lives in rented accommodation with his partner and 2 kids.

I am thinking about buying a property for him to rent out until he is able to get a mortgage and can buy it off if me.

What are the implications of this? Is this a good idea?

Thanks.

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