Joint mortgage application with parent...

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rob oyle

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Hi,

Appreciate any input on my query below...

I have c.€40k in savings that I would like to make greater use of than have it sitting in a deposit account.

I was considering a joint application for a mortgage with my mother, who is in her late 50s and is still working, has her own significant savings and is renting. Would banks really accept such a joint application as an owner occupier application given my mother would be living in the house (in Donegal) while I continued to work and live in Dublin? Some of the investment property mortgage interest rates are prohibitively expensive.

I would expect a loan LTV of c.50% and a relatively short term arrangement (up to 20 years).
 
Sorry but what's the benefit to you here?
Will your mother be paying you rent?
Can she not purchase the house on her own?
Does she want to purchase a house with you?
You'll be paying rent in Dublin and perhaps some mortgage payments in Donegal, so you'll go from a position of having lots of savings, to none and worsening your current financial income to buy a house 300 miles away.
What happens if you decide you want to buy a house in Dublin, will your mother be able to buy you out?
I just don't see the logic in this.
 
My first objective is to put my lump sum to use and to buy property as a way of investment diversification. I had envisaged the money that I already saved being put to some sort of active use.

On the other hand, my mother wouldn't be able to get a viable mortgage (at 59) to be able to buy. We would have expected a 50:50 split on the mortgage repayments with neither of us being financially stretched in this arrangement.

In short I would be looking for a way to invest without attracting investment property staus on my loan with ultimately a family home available should I move home. I have no ultimate intentions of buying in Dublin but my mother would probably be able to buy me out, if that came to be.
 
rob oyle said:
My first objective is to put my lump sum to use and to buy property as a way of investment diversification. I had envisaged the money that I already saved being put to some sort of active use.

On the other hand, my mother wouldn't be able to get a viable mortgage (at 59) to be able to buy. We would have expected a 50:50 split on the mortgage repayments with neither of us being financially stretched in this arrangement.

In short I would be looking for a way to invest without attracting investment property staus on my loan with ultimately a family home available should I move home. I have no ultimate intentions of buying in Dublin but my mother would probably be able to buy me out, if that came to be.
Click to expand...

The two statements I've bolded seem contradictory to me.

Investment and property don't seem compatible bedfellows to me, added to the location Donegal (no offence) but Donegal is awash in available houses so I can't see an investment making money there for a hugely long time.
 
You're right dereko1969, in terms of the two statments you highlighted my mother would be able to buy for cash but I wouldn't, hence the arrangement of the joint mortgage.

The house would remain a family home (when I say investment I mean buy when it's affordable, not in order to sell later). In essence this would be a parent facilitating a joint application despite having the means to purchase outright and I was wondering is this too convuluted to get over the line as a mortgage application?
 
What's the benefit for the mother? It just looks like the beginning of another fine mess. Would you not be better off buying in Dublin for yourself. At least it's something that you could easily off load if necessary.
 
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