New Family Home

Posted on 10 October 2012 by Chris

New Family Home

My mom currently owns her house which is worth £130,000. We are looking to purchase a house worth £250,000 so my mom, girlfriend and son(three times a week). It has an annex attached. Is it as simple as having to sell the house and use that for a deposit or could we unlock £100,000 of the equity in the house and get a mortgage for £150,000? We have a combine income of £40,000 a year. Would we be able to get a mortgage even considering my mom is in her late 60's?

There are a number of options available to you, including remortgaging your mother's current main residence onto a Buy To Let basis and using the funds raised to provide a deposit for the purchase of the new property. You can then look to take out a mortgage on the new home. Much of what you can and can't do is dependent on your individual personal circumstances. To get a clearer idea of your available options, it would be advisable for you to speak to one of our consultants. Please let me know if you wish to do so.

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.

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