thinking about Remortgaging parent's house

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scarymary

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I am an only child and recently got married. AIB rang us and asked if we were interested in a mortgage and said that on our salaries we could get up to 450k. We only want 300k which will pay for a house and our debts.

As there is only me and there are 5 kids in his family I have been thinking about approaching my parents and asking them can we re-mortgage their house in order to get the lump sum of 300k and not have to save an 8% deposit that with renting and outgoings would take over a year.

Does anyone know if this will affect my parents living in the house?
Can I get life insurance to cover anything happening to us which would protect my parents.

The last thing I want is in the case of our untimely death my parent's house being re-possessed.

I have heard a lot of people have done this and its very favourable if your an only child ...........
 
Nothing really I suppose - I should have mentioned that between private college fees and other things and basically not managing our money the pair of us have managed to rack up about 50grand in debt )
so we were thinking that we would be more likely to get the money to pay the debt off and get the mortgage if we approached my folks about re-mortgaging.

Or can you get a debt consolidation mortgage?
 
You can only get a debt consolidation mortgage if you have some equity in a house. As you're not a home owner, you have no equity.

The type of arrangement you are proposing is noted for damaging relationships even in the closest families. People who are in debt and who borrow from family because it is "easier" - which is what you are proposing - invariably end up not repaying the debt to their family and causing problems between them and other family members. Your folks have probably spent their lives building up the equity in their house and will need it in their latter years. Dont take it from them.

If you are 50k in debt, you should be making a effort to clear this debt before getting in more debt. Question is, if you cant handle paying off 50k and saving a few grand, what chance do you have with 300k?

Best thing you can do is start eating into the 50k and save a deposit.
 
I think I have three more years left in my loan and he has about 4. We have got smaller accommodation and we are saving a deposit. I just got worried about the house prices going up and was thinking maybe we could do it quicker with some help. A riend of mine was telling me that she knew someone that did it, which got me thinking. I am 28 now with a good job and so has he so we would rather take responsability for ourselves then. If it would cause any problems at all then I wouldn't dream of it.

She had said to me you can transfer the house into your own name, give your parents a life interest and remortgage it. But I think back to square 1 now.
 
If it were me I'd be waiting the year, maybe more, as an exercise in getting on top of my spending, debt, and also I would expect prices to fall considerably by next year, so the deposit will be less as would the price of the house and thus the loan less. In fact I can't see any reason to rush into it at all. You'd be putting yourself under more pressure when you've no need to.
 
Thanks I was reading up on the economy and different articles saying it can't get any worse, the housing market is going to get better etc.. then other commentators saying it will be several years before the property market goes up again.

We'll plod along and keep my family intact.
 
Sorry now but you are a bit old to be going to Mammy and Daddy to bail you out? Stand on your own two feet and start taking on the repayments yourselves. Your children do not actually have to be financed through college contrary to popular belief.
 

That's scary Mary
 
"She had said to me you can transfer the house into your own name, give your parents a life interest and remortgage it.

I think the OP's post plus the above have to rank as scariest posts of the year.

Let me see - lets take what belongs to my parents ( I wonder if the parents have any idea what their ony child is thinking?) , get them to take out a huge loan, but we will allow them to live in the house ( terrific), we will repay the loan or maybe they should? So, we don't need to think sensibly about how we will raise the money to enable us to buy our own house.

And if we/they can't make the payments, they lose the house.

All so offspring can access their inheritance while parents are still alive. Maybe the parents would rather not get into huge debt?

Terrifying.

mf
 
scariest post of the year - thats a scary award alright. In my defence the way she was saying it to me was that my parents would never be affected by it if you do it a certain way and that loads of people do it and she was more or less saying there is nothing wrong with it.

Of course I don't want to get my parents into huge debt or be evicted in their old age and by the reaction here obviously that would happen. I just don't know anything about this sort of thing and just wanted to ask about it.
 
have you considered what might happen if yous should split up in the future? your other half stop paying his share of the mortgage, you have a few kids & no income - what would happen to your parents and their house then?.
 

Is this the same media that said everything was ok or a worse a soft landing etc etc and effectively kept the crazy house price increases going for much longer than it should have?

I would not trust the media or economists as it is all pure speculation. You possibly dont hold great feat in fortune tellers so why would you have any more faith in the media.

As for relying on your parents house, I think this is a bad idea as others have posted. In the current climate I would play very very safe.

But look on the bright side, the house prices are still dropping so in twelve months time you might be better off with the same money going further!

Best of luck.
 
It seems that the OP has stated that she won't be pursuing this anymore as she has gotten the advice she sought and has decided to heed it. She has said this more than once elready and still people are choosing to dissuade her from something she is already dissuaded from, if they bothered to read the full thread.

Scarymary, you should be able to close the thread yourself through the 'thread tools' button at the top right-hand side of the thread.
 
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