Hi Hexites,
Just need your help again!
I'm 24 and working in my first graduate job where I'm getting a half decent salary of £30-40k (won't expose exact details). I've almost reached a year at the company now so I'm hoping I'll get a slight bump in salary but I'm sure my salary won't be over £40k even with a raise. This means mortgage wise I can't really get much more than £140k-180k when it comes to a loan. I do have a good credit rating however.
Now the main spanner in the works is I want to get my own flat (I've been looking in the £150-200k range on the outskirts of London and I want to buy in the next few years), but at the same time my parents are in their early 50s so they will eventually want to retire and to buy a house. We own a family food shop but business has not been great over the last decade so they won't be able to get a great mortgage either. I have two siblings that are still studying and are much younger so they won't be able to help and they will be living with my parents. To make all matters worse we live in London where both house/flat prices and rent are rather crazy.
My parents want to buy a 3 bedroom property, and to convert the living room to a bedroom so that ultimate we have a 4 bedroom house. We're looking on the outskirts of London so have found some affordable ones which whilst are far from ideal, are still a house. My parents and I do however have a very large deposit which means we can use a broker to get a mortgage higher than what my salary would support.
I have been told that I could get the mortgage initially under my name to get a higher chance of acceptance and then later on, once we have sold off that place, my parents can find another job and work full time which should bring home more money. They're telling me the mortgage can then be transferred over to them. The reason they didn't already do that is because they had much more flexibility in raising my siblings whilst owning our own family food shop and the rent covered the whole property which means the bedrooms/living area upstairs. (We live upstairs)
Now my dilemma here is how will this affect my 'chances' of getting my own flat. If I already take a mortgage out and it gets approved and I do manage to transfer it to my parents then I don't think I am a first time buyer anymore which would make it difficult for me to get a place wouldn't it? I'm very wary of how that will work and trying to google it does not yield many results as it seems usually it's the parents that help the children and not the other way around...
My main problem is I don't want to be living with my family in a tiny house until I'm like 40 or something paying off a mortgage for them but on the other hand they can't work in the family shop forever and the rent just keeps going higher whilst business for them is rather hit and miss nowadays.
I know that was horribly written but hopefully it somewhat made sense! If anyone has a better solution than the one I'm currently presented with then please do share.