Mortgages First Time Buyer

[blondie80]

Hi all. Who is the best to apply to for a mortgage with my father going as guarantor?
We have put an offer on a house with land. The house is for myself the husband and 3 kids and the land is for my parents to build a granny flat on and have their own independence as well as still being looked after.
It is my father who is looking for mortgage as we will be renting from them but due to his age he is struggling as even though he is asset rich they are calculating it over 6 years. He has just put his house on market and its been valued at 250k. The house we are interested in was 200k but we have had a bid of 180k accepted.
My question is due to the fact that my husband salary is only 23k and I am not working at the moment as with 2 of the kids are 2 and 4 months it would cost too much in childcare. Would we be able to get a mortgage with my father as guarantor. He is in higher salary scale (wont ask him how much as thats his business) but he would clear approx 3k per month.
We are hoping once parents move down I will be able to return to work as well.
Any advice would be much appreciated

 

[LDFerguson]

You've had a bid of 180,000 accepted. Your father is selling his house and it's valued at 250,000. How much extra do you need to build the granny flat?

At first glance, I'd keep your husband out of all this. On a salary of 23,000 with a wife and three children, most banks will consider that he has no disposable income to put towards a mortgage. For example, AIB would expect that a family of five should have a minimum of 2,800 per month NET before paying any mortgages or loans. Your husband is earning 1,917 gross.

I suspect the only way this will work is if your father gets whatever mortgage he can qualify for on his own and you rent from him. How old is he? Some lenders will offer a mortgage to age 70 which would help with affordability, but he'd still need to know how he would pay the mortgage after he retires, unless he can/wants to work until 70.

Being asset rich is no use when applying for a loan. What's relevant is how he's going to pay the monthly repayments. Being asset rich doesn't help him to do that.

 

[LDFerguson]

is this the same cottage you mentioned that you'd bought in this thread? Sounds like it needs some work. If there's essential work, your father would need to factor in the cost of that when applying for a mortgage.