Mortgaging Parent's Home

Posted on 25 March 2011 by joanne govan


Is there a mortgage that my brother and I can take out, leaving my parents names on the mortgage and deeds etc as the property is theirs and they are over 65.

Joanne,

Your parent's names will have to be on any mortgage secured on their property and it is not possible for you and your brother to raise funds without their agreement.

As they are over 65 there are a limited number of Lenders who will consider a mortgage for them and these will want to be sure that your parents can afford any mortgage granted.  It might be possible for you and your brother to act as guarantors for your parents and this would mean that you are both jointly and individually liable for ensuring the monthly repayments are paid on time.  In the event of default and a loss on sale the Lender could pursue you as guarantors for any loss.

Any Lender and/or Mortgage Broker will also want to be sure that your parents are not being unduly influenced to take out a mortgage against their best interests and I recommend that they take independent legal advice.

Peter

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