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Taking out mortgage on a parents house

  • 29-06-2022 8:41am
    Registered Users Posts: 19 gkcf22

    Out of pure curiosity I am wondering if it is possible to take out a mortgage on a parent's (mortgage free) house in order to fund renovations at a lower rate than a standard bank loan. Obviously it would only be a part mortgage and not a full purchase of the property but maybe purchasing a third of the house for example. I'm not sure if there is anything to stop someone doing this should the owner of the house be in agreement but maybe I'm wrong? Anyone any knowledge of this?


  • Registered Users Posts: 26,593 ✭✭✭✭ looksee

    It seems unlikely (though I admit I know little about it). The house is security for the mortgage, if you don't own it how can you offer it as security? Are the renovations on the same property? Presumably the parents are too old to get a mortgage themselves?

    Have you seen this

  • Registered Users Posts: 32,979 ✭✭✭✭ o1s1n

    There might me some kind of equity release you can do on the parents property and use that to fund the other property, would be worthwhile talking to a mortgage broker who could run through options.

  • Registered Users Posts: 26,593 ✭✭✭✭ looksee

    We don't know whether the renovations are for the parents' property or the OP's property, presumably that would make a difference.

  • Registered Users Posts: 19 gkcf22

    The renovations would be for the parents' property which would in the longer term be inherited.

    Well this is my question, is it possible to buy a percentage of a house from a parent. Parents are too old to get a mortgage yeah they are pensioners (I'm assuming there but don't think I'm wrong).

    As the above poster states it's probably best to get a broker to see what the options would be, any recommendations for something like this!?

  • Registered Users Posts: 32,979 ✭✭✭✭ o1s1n

    GMC mortgages sorted me out with my last purchase which actually involved an equity release. Worth giving a shout, I found them very good.

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  • Registered Users Posts: 5,867 ✭✭✭ Claw Hammer

    In theory it should be possible to buy a % of the parents house from them and mortgaging that share of the property to pay for it.

    The danger with this is that the parents become exposed to the loss of the property if their is a default. Many old people don't like owing money and don't like thinking that they could be turfed out of their house for non-payment.