Can Parents Take Out A Motgage On My Behalf?

[MooCowKat]

Hi all :)

So I'll give a basic overview of my situation. Myself and my partner have been living outside of the UK (in Ireland) and working for the last 3.5 years. We have been fortunate to get an opportunity to move back home, my partner got a job and I am hoping to get one ASAP.

We were going to live back with our parents very short term until we got organised to rent, however my partners parents have offered to gift us a deposit for a house, if we could get a mortgage (we are first time buyers). However it is seeming that this will take quite a while for us, until we get our credit scores back up and get ourselves on our feet and through probationary periods in work.

The in laws are willing to take a mortgage out in their name, on behalf of us. We would make the monthly payments and our names would be on the deeds... With the intentions that in the not too distant future we would assume the mortgage from them (not sure if that is the right terminology). Rather than us having to rent somewhere and get our finances on track (and ultimately not be living back with the parents for too long!).

So I am basically just wanting to know, down the line would it be harder for us to take over their mortgage on 'our' house? It would be the quickest/easiest option in the short term but it might not be the wisest...

Thanks in advance!

[Islay]

Yes they can get a mortgage and buy a house for you but you cannot take over the mortgage you would have to get a mortgage and effectively buy the house from them.
Although I do stand to be corrected on this by some legal eagle!

[chiaroscuro]

It is usual for the mortgage to be in the borrowers' names with the parents acting as guarantors

[andy-hughes]

Your best bet is to talk to some mortgage providers - starting with whichever provides your in-laws' mortgage, and then go from there.

Basically, if your in-laws can provide proof that they can keep up the payments, then a mortgage should be granted, but details are individual depending on their circumstances, and yours, which makes giving a simple 'yes' or 'no answer on here difficult.

Make some enquiries, you'll soon get a feel for whether or not the deal you want is out there.

Good luck.

[bednobs]

If your in laws took out a mortgage they would have to have their name on the deeds, not yours. You can't take out a mortgage on a property you have no interest in.

[ducksie]

I think Islay is correct on this, the mortgage is in their names and both you and partner are only going to be renting from them. You'd be better off moving in with them and renting until you build up your credit rating.

What happens with the parents' mortgage should you and your partner split, the older couple are left with a property that neither of you have a legal interest in.

[MooCowKat]

Thank you all :)

It's something I know very little about, but I guess its better to take our time and build it up ourselves!