Mortgage with a parent (newly separated)

[Thisorthatwhoknows]

Hi everyone,

I'm newly separated and considering my options for the future. I would like to buy another house but can't get a mortgage on my own. I'm 40 and have been looking at joint mortgages with a family member. I can afford to pay it with my salary, UC and maintenance but it's not enough for me to borrow the sum I need.

Has anyone done this or got a parent to act as a guarantor?

I don't think lenders will accept UC as a form of income. Please don't quote me on this but I think the only benefit you can use as income for affordability would be Child Benefit

Halifax would accept UC as income. I looked into putting my dad on my mortgage but couldn't make it work. Good luck!

Thank you both. I had heard that most lenders don't use UC hence why I'd need my Dad to go on the mortgage as my income looks pitiful without it. I'll have a look into Halifax though.

Depending on your Dad's age the mortgage insurance might be high.

How old is your dad? You might struggle if he would reach state retirement age before the end of the mortgage term.

Used to be easy now is hard.

What happens if he needs to go into a care home? Your house is an asset which may need to be sold etc

If he already owns a home there will be additional stamp duty

He will have to pay capital gains tax on any property increase (unless he is living there)

When he dies the house may have to be sold to meet his liabilities
etc etc

Yes it's tricky isn't it. I spoke to a mortgage advisor and they said he's too old anyway. I just want to be able to buy a home for the kids and I after I separate from my husband but at the moment I can't find a way to do that.