Borrowing against parents house to buy flat?

[tinawe]

Is there such a mortgage where you could borrow against your parents house as collateral?

My parents really want to help me get on the housing ladder. But firstly rates are so expensive at the moment, and secondly, I don't have a big deposit yet. But I am wasting £25k a year on rent.

I live in London and need to live here for work and family. Not interested in moving to Zone 89 or to Kent. Maybe when I'm older.

Currently aged 27 and in a well paid graduate job (c120k). Looking at flats between £500-600k.

My parents own two properties. One is a buy to let worth about £350k and their home is worth about £1.3 mil.

Is there a way to use their property as collateral to buy? They don't want to sell up.

Aware I am in a better and more fortunate position than most, but London is crazy expensive.

It would make good financial sense for their adult child not to be paying rent though, & seeing as the parents are mortgage free and presumably have pensions I would personally prefer to spread the wealth around the family a bit more rather than keep it all for myself.

Everyone takes different views on it of course

Why not save more & buy in a few yrs. What happens if you use your parents property as leverage & lose your job?

Saving 1k a month should be relatively easy and you’ve got 25k in a few years

@Sunnyandsilly

It makes good financial sense as long as you have other pensions and don't need the rent for income. Plus rental properties are becoming difficult with tenant rights likely to get more onerous for landlords. We had two fully owned rental properties and they were sold for DDs deposits. We paid CGT but we made £250,000 profit on each one. It depends on what you have and where it is, but buy to let isn't in a pension portfolio and now has risks in terms of releasing capital. So we sold and it's enabled us to fund deposits for DDs. That's what we always intended though.