Hi Guys,
I am hoping someone can help with this. We have an existing property but want to purchase a bigger house. We do not want to sell the existing house as we would not get anywhere near what it cost us. Our bank have said that they would give us permission to let so we dont want to use this property at all.
The new house we want needs remodelling and there are a few things that we need to fix. The house is valued at £350,000 and the deposit we have is £70,000. However I want to borrow £300,000 as when you take into consideration stamp duty, solicitor fees, arrangement fees etc, the £70,000 will not go far with regards to money left for the repairs etc. We have a joint income of around £90k - £100k but even with this we wont be able to borrow around the £300k due to the LTV.
We were hoping to ask either my parents in law who no longer work but have no mortgage left and their house is valued at around £400k or my mother's partner who does work earns maybe around £50k + has no mortgage left in his house to act as guarantors for the rest.
However I am not sure how this works and if they would be suitable. I dont want to borrow money but maybe this way they dont actually have to hand over hard cash but just say they would help if needed (which they wont :))
Hope that makes sense.
Thanks
I am hoping someone can help with this. We have an existing property but want to purchase a bigger house. We do not want to sell the existing house as we would not get anywhere near what it cost us. Our bank have said that they would give us permission to let so we dont want to use this property at all.
The new house we want needs remodelling and there are a few things that we need to fix. The house is valued at £350,000 and the deposit we have is £70,000. However I want to borrow £300,000 as when you take into consideration stamp duty, solicitor fees, arrangement fees etc, the £70,000 will not go far with regards to money left for the repairs etc. We have a joint income of around £90k - £100k but even with this we wont be able to borrow around the £300k due to the LTV.
We were hoping to ask either my parents in law who no longer work but have no mortgage left and their house is valued at around £400k or my mother's partner who does work earns maybe around £50k + has no mortgage left in his house to act as guarantors for the rest.
However I am not sure how this works and if they would be suitable. I dont want to borrow money but maybe this way they dont actually have to hand over hard cash but just say they would help if needed (which they wont :))
Hope that makes sense.
Thanks