Hi all,
I'm about to start a training contract and should qualify on c.£70k in November 2026. I have about £27k in savings. DP is also on a grad scheme at the moment (earning less than me) and should finish it in the next couple of years.
To cut a long story short, my Dad and his wife are looking to sell their home (they have two between them, both with a mortgage) and they have said they would be willing to give me an interest-free loan of £175k (from the equity in house 1) so that DP and I could buy a flat where we live in London. This would be with a view to us paying down c.£800 to them each month (in addition to the mortgage, which would be relatively low), and then remortgaging in three years time when I qualify as a solicitor. They definitely need the money back in three years as that is when my dad plans to retire and I think that money will represent the bulk of his pension.
This has come about because my Dad was saying that he intends to use the equity from house 1 (the £175k) to buy a flat in cash and rent it out in a cheaper area, but I suggested that he consider getting a BTL mortgage and renting it to DP and me, and we would then buy it from him when I qualify. However he doesn't think this is feasible as his age means he can only take out an 8 year mortgage term (I have looked into it and think that actually the age limits are different for BTLs, but I don't want to push the issue...)
WWYD if you were me? I am really grateful that he wants to help, but feel sceptical that a mortgage lender would lend to DP and I when we're both on fixed term contracts, and the deposit would essentially be on trust from my dad i.e. he would have a stake in the property. Do you know anyone who has done something like this?
Practically speaking I know I should just sit tight and wait to buy when I qualify - but I am nearly 30 and renting in London is so expensive and feels quite precarious. I also don't want to put pressure / stress on my Dad as he works too hard and I really think he should retire soon. I'm quite a neurotic person and anticipate that I would just be worried that the house would devalue / get destroyed in an earthquake and then I've nuked all of my dad's pension in this convoluted scheme because I couldn't wait two and a bit years.
What would you do if you were me? Please don't call me a desk job wanker with no clue about the real world etc. Thank you !