Transfer of mortgage to a child

Posted on 7 September 2008

Hi Katie I am 61 years old working full time and have an outstanding mortgage of 110,000.00 this mortgage is in joint names with my partner my property value is approx 180,000.00 so there is not enough colateral to enable me to use for help to make my life easier. (or retire) My other option, if this is possible, that my son of 31 who lives with us could buy our property on a buy to let mortgage he has enought savings to cover the deposit and if possible borrow 130,000.00 pay up my mortgage of 110,000 which allows the remainder to have his savings back and we then continue to pay the mortgage as rent. Hope this makes sense to you Katie and I look forward to hearing from you with any suggestion that my help my life a bit easier thanks and

regards Doreen

Hello Doreen,

Thank you for your question.  In short yes your son could consider buying your property.  However as he actually lives at the property it would be based on a residential basis.  This means his income needs to be around £32,000 to be sufficient enough to cover a loan size of £130,000.  You can still contribute/pay the mortgage as rent but the mortgage will be based on your son’s affordability and circumstances.

The best suggestion I can make is that he seeks mortgage advice from a whole of market broker, you can reach our brokers on 0845 4131053.

 

Answers provided in response to Ask Bea are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not neccessarily represent the views, positions, strategies or opinions of Charcol Limited. All comments are made in good faith, and neither Charcol Limited nor Bea will accept liability for them.

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