Can my son buy his council flat under right-to-buy with me as guarantor?

Posted on 8 August 2007

My son has been offered his council flat under the right-to-buy scheme for £60,000. He is not working as he is doing his Knowledge to become a London taxi driver (hopefully qualified within 6 months). He has no income other than what I and his girlfriend give him. Can he obtain any mortgage with me as a guarantor? I work full-time and have 3 mortgages (two - buy to let). It has to be bought in his name.

Thanks


Hello Lynda,

Yes the mortgage lenders would be fine with this, if you can show that your son will have income in the next few years that can support his own debt.

Lenders who can consider Right to Buy purchases with a guarantor are: Northern Rock, Royal Bank of Scotland, Principality, Norwich and Peterborough and GMAC, as well as Cheltenham and Gloucester.  They will all treat your existing debt differently, but typically you will need to show that your income covers your own residential mortgage and the new one.  The existing BTL's will normally be ignored of they pay for themselves.

As there are several lenders for you to speak to you might benefit by just getting a broker to do the leg work for you.

Katie

Category: Buy-to-let, Council houses, Special circumstances

 

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