Hello, just looking for mortgage advice!
My partner and I want to get a mortgage for a flat worth £260k.
I am in a lucky situation in that my partner's mother has offered to gift him 30% (£78k) of the cost as a deposit so we would get a mortgage for the remaining 70%. We'd be responsible for paying back half each of this mortgage each month. If we then re-sold the house later, partner's mum would get 30% of the sale value back and we'd split the remaining 70% between us.
So in essence, I would own a third of the property but pay half of the mortgage, and in return I get a big cash deposit, essentially as a free loan, for as long as we want to live in the house. My partner would own 2/3, and give his mum a third of anything we sell it for.
Firstly, are there any legal issues you can see in this? I am lucky that mother-in-law seems to trust me enough for this arrangement, and anyway the deposit would be gifted to my partner rather than her legally owning a third of the house.
Secondly, am I losing money here? I am paying half the mortgage but only owning 35% of the property at the end of it all. However, I'm not paying any interest on the 'loan' of the deposit and could never gather that much of a deposit in any other circumstances as I have no savings.
Any advice would be much appreciated!:D
Thanks!
My partner and I want to get a mortgage for a flat worth £260k.
I am in a lucky situation in that my partner's mother has offered to gift him 30% (£78k) of the cost as a deposit so we would get a mortgage for the remaining 70%. We'd be responsible for paying back half each of this mortgage each month. If we then re-sold the house later, partner's mum would get 30% of the sale value back and we'd split the remaining 70% between us.
So in essence, I would own a third of the property but pay half of the mortgage, and in return I get a big cash deposit, essentially as a free loan, for as long as we want to live in the house. My partner would own 2/3, and give his mum a third of anything we sell it for.
Firstly, are there any legal issues you can see in this? I am lucky that mother-in-law seems to trust me enough for this arrangement, and anyway the deposit would be gifted to my partner rather than her legally owning a third of the house.
Secondly, am I losing money here? I am paying half the mortgage but only owning 35% of the property at the end of it all. However, I'm not paying any interest on the 'loan' of the deposit and could never gather that much of a deposit in any other circumstances as I have no savings.
Any advice would be much appreciated!:D
Thanks!