Hi,
I'm needing urgent help as finance clause clock is ticking!
We have entered into an arrangement to purchase a property in partnership with my mother (hubby & I 25% each, mum 50%).
She has equity in her PPOR. We have equity in a package of PPOR & 2 renters.
We all need to borrow full amt + costs (we have enough equity to be below 80%).
Broker is suggesting that we take out a joint mortgage with our house + mums as the security.
We don't like the sound of this. Had wanted to keep it all professional and more arms length than this for many reasons. Sounds like a nightmare (eg what if one of us wants to lower our interest costs by making a lump sum deposit etc).
Is this how things are normally done? I would have thought we could both just borrow separately to fund project. One problem appears to be that would require refinancing our whole package (which is cross-collateralised).
Taking all suggestions...
I'm needing urgent help as finance clause clock is ticking!
We have entered into an arrangement to purchase a property in partnership with my mother (hubby & I 25% each, mum 50%).
She has equity in her PPOR. We have equity in a package of PPOR & 2 renters.
We all need to borrow full amt + costs (we have enough equity to be below 80%).
Broker is suggesting that we take out a joint mortgage with our house + mums as the security.
We don't like the sound of this. Had wanted to keep it all professional and more arms length than this for many reasons. Sounds like a nightmare (eg what if one of us wants to lower our interest costs by making a lump sum deposit etc).
Is this how things are normally done? I would have thought we could both just borrow separately to fund project. One problem appears to be that would require refinancing our whole package (which is cross-collateralised).
Taking all suggestions...