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
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.
Answers provided in response to Ask the experts 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 necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.
We recommend you seek professional advice with regard to any of these topics where appropriate.