Mortgage and deposit for first time buyer on buying family out of home

[Gmac]

2 children left the family home after both parents have passed on. One wants to buy the other person out so need a mortgage for 50%. Do they need 10% of the house as they’ll be first time buyer. Is it 10% off the mortgage or house value? Would lenders be a little flexible if only need 40/45% depending what deposit is required. House is furnished etc so nothing needs to be bought. They could rent a room out as they’ve no children or partner to help cover the majority of mortgage

 

[skrooge]

Typically you need equity of at least 10% of the value of the property with the remainder of the balance being made up of mortgage credit. It sounds like one sibling is bringing equity of 50% so they should be okay on that front.

There are two hurdles to mortgage approval. They will also need to show that can meet the repayments on any loan regardless of the LTV. Typically the loan limit is 3.5 times their income but can be lower depending on their circumstances.

 

[Gmac]

Thanks for response. They’d be earning enough for 3.5. More just the deposit what’s required