Please or to access all these features

Add post

Watch this thread

Save thread

Start a new thread

Flip thread

Hide thread

My feed

Active Unanswered threads

Getting started FAQ's

Unanswered threads Acronyms Talk guidelines

Hide shortcut buttons

Talk

Money matters

Find financial and money-saving discussions including debt and pension chat on our Money forum. If you're looking for ways to make your money to go further, sign up to our Moneysaver emails here.

Flip

Original poster

How can I help DD to get a mortgage?

7 replies

MagzFarquarson · 23/07/2015 21:36

She's working full time, so am I. I can help her with deposit. If I contribute per month to her income by DD or SO, can she get a mortgage?

OP posts:

NotGoingOut17 · 23/07/2015 21:41

Presumably whether she can get a mortgage or not will depend on her income - I'm not sure whether you mean you want to give her a deposit or a deposit and a monthly boost to her income. If you want to help her with a deposit there is no need for you to give her a monthly amount you can just provide her with the deposit amount. Not sure if all mortgage providers require this, but for mine, my Mum had to write a letter stating the amount was a gift and she did not want any claim on the house.

Original poster

MagzFarquarson · 23/07/2015 21:54

Thank you so much for replying.

She's only earning about 17,500 pa but she's 25 years old, single, and we are in the north west of England! I can give her probably 10,000 for a deposit plus could subsidise her to 250 per month. Do you think she has a chance of finding her own home? Two/three bed terraces are going for around 80/100,000?

OP posts:

NotGoingOut17 · 24/07/2015 00:59

Well the 10k deposit would be a good start - would be a 10%-12.5% deposit based on the house prices you've given which is what most people struggle with. I am not sure what she would be able to borrow on her income, but most mortgage providers have affordability calculators on their websites so perhaps she could look at them? I am not sure whether or not the 250 a month you can give her would be taken into account though, it's not something I have any experience of.

If they wouldn't accept it and her income alone isn't enough to borrow the money needed then another option I suppose you could consider is for you to own the home with her, that way your income would be taken into account too? But you would obviously be liable also. Hopefully she would be able to get a house off her own income but I think on her income you'd probably be looking at the 80k end of the bracket rather than the higher end. But like i say, she might want to look at some affordability calculators in the first instance.

Original poster

MagzFarquarson · 24/07/2015 06:24

Hadn't thought of a joint mortgage - that's a great idea. I'll look into it today.

Thanks again for your suggestions

OP posts:

throwingpebbles · 24/07/2015 06:55

Yes, I was coming in to say you could own jointly. It doesn't have to be in equal shares.

specialsubject · 24/07/2015 11:36

sounds possible but factor in running costs, maintenance and the inevitable increase in interest rates.

definitely a two-bed at least, then she has the option of a lodger.

chelle792 · 24/07/2015 11:40

They wouldn't accept my mum as guarantor because she would retire before the 25 year mortgage expired. A deposit is the best help you can give.
Try an independent mortgage advisor. Many of them take their fees from the bank and therefore don't charge you. They will be able to tell you how your daughter can do it

Flip