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Can I mortgage house to help DD

(58 Posts)
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kittylester Wed 08-May-19 15:50:38

Would a Life Time Mortgage work?

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Nonnie Wed 08-May-19 15:49:51

I don't think this is buy to let, it is simply borrowing against your assets. Your lender would want to know how you planned to pay back the mortgage and might not be so keen on you relying on your daughter to pay it. Perhaps you have sufficient income to cover the monthly payments?

I think the CAB may be able to advise about HB, not sure it covers mortgages payments.

I think this needs a lot of thinking through and professional advice.

We were in a position to give our children money to help buy houses without needing them to pay back but one of them did have to satisfy the solicitor that it was an outright gift to him and his wife.

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Ilovecheese Wed 08-May-19 15:39:14

There could well be a problem with the HB. If you already owned a property and were renting it out to a stranger, then the stranger left and your daughter moved in, HB might be paid.

For family members the thinking in HB is that even if she didn't pay the rent you would not make her homeless, so there would be no need for the state to pay the rent.

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paddyann Wed 08-May-19 15:36:04

buy to let rates are lower than standard rates and you can take a buy to let mortgage up to 80 years old from some companies.Dont go to the bank speak to someone like the Mortgage Works ,you'll get them online and they will explain whats needed.The rent paid has to cover the mortgage plus a bit more .Good luck .Hope it goes well .

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GillT57 Wed 08-May-19 15:18:54

Best get some proper legal advice. Although this does seem a good idea, there may be complications with HB being paid to a family member

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Telly Wed 08-May-19 15:09:09

Basically you are talking about a buy to let mortgage? I think that they are a higher interest rate, but you would need to check it out. Would be best if you own the house, that way you protect your investment. Which could become an issue should your DD remarry - her husband would have an interest. I think that I would take legal advice and make some preliminary enquiries. Perhaps start off with your bank? Be aware though that circumstances change and you are only 70. Who knows what the future may bring but buying yourself would offer some protection.

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Sofa Wed 08-May-19 15:03:02

I took out a £140,000 mortgage when I was 65 and already retired.

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lmm6 Wed 08-May-19 14:58:21

Have been here before re this. Could afford to give DD £75K as deposit for a small house (house to cost, say, £175K). Can we raise the £100K against our house (worth £400K with no mortgage)? Idea would be that DD would pay us rent to cover the mortgage. But we are 70. DD currently earning but gets some Housing Benefit top up. Pays £575 rent pcm currently. Would mortgage lender/bank lend us money if DD pays rent to us which covers the loan amount? Guessing not and that bank/B.soc would say we are too old. BUT when we pop our clogs, DD will inherit at least enough to pay the mortgage off.

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