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Clare
Clare, Family Solicitor
Category: Family Law
Satisfied Customers: 34105
Experience:  I have been a solicitor in High Street Practise since 1985 and have specialised in Family Law for the last 10 years
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I was hoping to get a mortgage for a flat but was turned

Resolved Question:

Hello, I was hoping to get a mortgage for a flat but was turned down. My parents are able to cash buy the property and put it in my name or joint names with the hope I could take a few months to get my finances better and remortgage the property to pay a big chunk of it back to them. Does that sound realistic?
Submitted: 11 months ago.
Category: Family Law
Expert:  Clare replied 11 months ago.

Thank you for your question

My name is Clare

I shall do my best to help you but I need some further information first

What would you like to know about this?

Customer: replied 11 months ago.
Well my parents were due to finance a house purchase for me by giving a large deposit put of the sale of their home, I would take out a smaller mortgage. Now I have been declined for the mortgage so I either try for a much smaller one or my parents cash buy the whole thing. As I'd like to pay them back as much as possible, would it be better going in joint names with myself and parents and can I remortgage it a few months down the line to give them some money back? I don't want to buy it off them due to fees on both sides. Other option is try for a super small mortgage and then remortgage it when my credit score is better.
Expert:  Clare replied 11 months ago.

What mortgage could you raise?

Customer: replied 11 months ago.
I was applying for a £160k mortgage but declined. My parents were to put in the rest to top up to £250k. Now without the mortgage we are thinking they might cash buy the whole thing and wondered if it was put in my name if I could remortgage it when my credit score improves or any other options. I wasn't given a reason aside from I don't fit their lending criteria. It may be too many outgoings or the fact I had 2 new credits taken out within the last few months.
Expert:  Clare replied 11 months ago.

Sorry - I meant do you know if you could get a smaller mortgage?

Customer: replied 11 months ago.
I think I could. I'm waiting for my broker to come back off holiday so he knows more lenders and their criteria. I imagine I could then remortgage in future if I want to pay my parents back most of their deposit. I'm just wondering what are the options if I can't get a mortgage and they cash buy. We may also consider a new build but I worry that if I remortgage the cost of the mortgage will be much higher as the value will increase when it is complete.
Expert:  Clare replied 11 months ago.

The easiest way to achieve this is to purchase the property in your name for cash.

You should then sign a Declaration of Trust confirming that you hold the property on Trust for them - with the trust to be redeemed when you have paid back the purchase priced.

I hope that this is of assistance - please ask if you need further details

Customer: replied 11 months ago.
Oh thank you. That is very helpful! If we went this way could I start up a mortgage to pay them back, as the property is in my name? Like a remortgage without having mortgaged in the first place? Many thanks.
Expert:  Clare replied 11 months ago.

Exactly so!

Clare and other Family Law Specialists are ready to help you
Customer: replied 11 months ago.
Great. Many thanks.
Expert:  Clare replied 11 months ago.

You are most welcome - I hope all goes well

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