Home for Relative

Posted on 16 March 2011 by Holly Turner


I own my mother's house as she is over 65 and unable to have her own mortgage. The house is worth approximately £300k and the mortgage is £80k. I don't live there and she doesn't pay any rent, but covers the repayments. Should I have a BTL mortgage, or is she classed as a dependent relative? Many thanks

Holly,

The answer to this will depend on who your mortgage is with. The majority of lenders would class this as a home for dependent relative and expect your income to cover this mortgage in addition to any mortgage on your own home. A few will class it as a regulated BTL and expect you to have a BTL mortgage.

If you are now looking to buy your own home or increase your own mortgage I would expect Lenders to want your income to cover both debts and this will limit the amount you can borrow.

Peter

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