My parents are moving house soon.

They own a bungalow, worth £150k, and they owe 35k on it (so I guess they don't OWN it.. but you know)

They have seen a house they want for £105k. They really want to remortgage for £140k, so they have enough cash to buy that house. Then sell the bungalow and make profit.

They went to estate agent mortgage advisor, and he told them they're too old for a repayment mortgage (dad is 47, mum is 50). He said because it would only be over 18 years, it would be 1200 a month. With my mum included its only over 12 years, it would be 900 a month.

He advised an interest only mortgage, for 400 a month, but there are significant penalty charges for repaying in full in the first two years. They are considering this, and letting me rent it for 2 years, then I get my own place after. But they're swaying towards just trying to sell it, and risk losing the house they want.

Any other options you can think of?

I know nothing about this shit so - can you be a third signatory on the mortgage?


Peace,

kowalski

Indeed that's something I proposed to them... they said they will look at it... I'm not sure either how it would work

peeps who buy houses at auctions get bridge loans they usually charge about 1% a month but you can pay it off whenever you want.
the loan is secured against the property that you buy.

other tip is find a good mortgage broker cos the banks often offer them better deals.

I think they asked about a bridge loan but cos of the situation it wouldn't apply or something. That's all they told me about that

how about they keep both houses do the interest only one and rent the other one for 600 a month thus making 200 a month profit

let ya parents do what they want

let them come to their own decision and tell them you fully accept any decision they make

I've told them that, at the end of the day I wana be moving out ASAP so its totally their choice I just wanted to help any way I could with any other ideas on mortgages etc...

They are looking at renting it out, but they are scared that if nobody rents it, they will be paying quite a lot of money to run both houses

Then *you* should call up your local lettings agent, and *you* can invite him/her over to review the property with respect to renting.

Agent will then give you

• a summary of the local lettings market, i.e. ask him/her:
  • "what is the demand for this sort of property, in this street?"
  • "how long does it take to get a property similar to this rented?"
• the predicted rental amount per month

they have 115 equity.

how does it work out they need another mortgage???

surely the equity on the current property will clear the bungalow leavin probably nothing after surveyers etc.... but frees them mortgage payments forever.

they could then put the house in ur name, ur remortgage for them for the ammount they require...

u pay the due... and when its paid off... u own ur own property.

god forbid when they pass away u have 100k + property to begin an empire with.



would that work?