Mortgage advice

nitram100

nitram100

nitram100

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Joined
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London
Hey guys just a quick random question.

Long story short.

Younger bro wants to get a mortgage on a small flat (90k), credit rating is rubbish (long story involving a nasty ex gf and some credit cards)

My rating is good and not interested in a mortgage in UK.

Can I get a mortgage, he lives in it, sends me mortgage payments and I put his name on the deed?

We're extremely close and he has a good job (NHS nurse) so there's no issues with trust etc

Sorry if it sounds like a dumb question, really just started thinking about it today.
 
Has he been able to get a mortgage in principle for that amount? Or has the poor credit rating scuppered that? If he can be named for the mortgage you could possibly act as guarantor instead?
The way you're suggesting you're possibly moving into buy to let territory.

Edit there's also a mortgage type thread in the home and garden section here. Might be worth popping in for advice from other folk going through it.
 
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Thanks for the advice mate will pop question in the other thread.

But to answer , correct it has completely scuppered his options, no mortgage in principle. I'll definitely look into the guarantor option though.

Thanks for the advice mate
 
Forgive me if this contribution offends its not intended to.
I'd make sure you are protected with at least some claim to the asset should anything go wrong. Despite the fact you are family, things can change and unless you can afford to write off a sizeable debt then I'd try and ensure that you are covered in a worse case scenario.
You may consider if it is possible to get a joint mortgage / joint tenancy. That way it may be possible for your brother to restore his credit score and you have claim to 50% of the flat. Assuming everything works out ok then he can buy you out when appropriate and you can decide whether or not you want to benefit from any capital growth that may have occurred.
It sounds like you are your bro are tight now and its great you want to help him but things can change especially if you are relatively young then its more likely that "stuff happens".
Anyway, good luck.
 
Isn't that the equivalent of gifting the house? Which goes way above the tax gift limit? Just my non legal 2p. I'd also just generally advise against it... Folk fall out!
 
No, you can't.
As someone mentioned, a guarantor mortgage might be an option but you would need some collateral to secure it with. They'll also check you could afford the mortgage payments if he doesn't make them - could you?

All seems like a bad idea though.
 
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HangTime said:
Irrespective of the legal side, when you say there's no trust issues, what about when he gets another "nasty ex gf", maybe he'll end up not being able to pay you for the mortgage payments.
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dLockers said:
You can buy a house and rent it to him but he aware that doing business with family over 25 years is a bad idea.
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You'll be in for some hefty bills should any of the above issues arise. The ongoing maintenance, insurance and then selling the place when he eventually decides to move out. Say he loses his job for whatever reason, you'll be left carrying the can because you're a good brother.

You say you're not interested in a mortgage for yourself at the moment but that could change as well and you may well struggle to get another and be forced to make a difficult decision.
 
I would echo the above. You could be a guarantor on his mortgage, but again if he gets another nasty girlfriend you're in trouble.

What about, you buy the flat, he rents it at a price that pays your mortgage plus maybe a small interest rate. He is responsible for maintenance.

Then you offer him the option to buy for what you paid for it in the future if his credit rating improves.

The end result is that you are at no risk, your brother is able to end up owning the flat if his credit rating allows in the future.
 
Can't you buy the house, then rent it to him? In effect it's the same thing, the only difference is who's name is on the mortgage, but if you both trust either other, what's the issue?

Once the house is sold / paid off, you can sort it then but I think gifting a house comes with some type of tax.
 
Hodders said:
I would echo the above. You could be a guarantor on his mortgage, but again if he gets another nasty girlfriend you're in trouble.

What about, you buy the flat, he rents it at a price that pays your mortgage plus maybe a small interest rate. He is responsible for maintenance.

Then you offer him the option to buy for what you paid for it in the future if his credit rating improves.

The end result is that you are at no risk, your brother is able to end up owning the flat if his credit rating allows in the future.
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This!
 
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