Is there such a thing as a hybrid resi/BTL mortgage

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    Is there such a thing as a hybrid resi/BTL mortgage

    I have a friend whose husband has walked out on her for another woman. They have a joint mortgage on their resi house. There is a two bed house on the market in our village. It is near a main road which is maybe why it has been on the market a while- normally two beds sell like hot cakes here. She is self employed, doesn't earn much and they have a child. She has been the main carer for the child as her husband works long hours. My question is, if her parents (who have very good incomes and have paid off their house/ have a lot of savings/investments) act as guarantors, could she get a mortgage on the two bed house? She will be in receipt of benefits until the divorce financial settlement, which could take a couple of years, who knows? Her parents are willing to provide a deposit. She could have tenants in until she is ready to move into the house.

    #2
    there are dangers of having tenants move in - some of them tend to not want to leave .... what would she do then?

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      #3
      This seems a very tragic situation which your friend faces.
      Unfortunately there isn’t anything which can be considered as a Hybrid Residential / Buy to Let Loan. Lenders for residential loans need to know that the applicant can meet the normal mortgage payments and excepting the possible “Rent a Room” scheme lenders would object to part of the property being let on an Assured Tenancy Agreement.
      All however may not be lost as it is possible for the parents to join with their daughter in obtaining a Residential Mortgage with the likes of The Family Building Society in Epsom ( Formerly The National Counties BS) The daughter can openly declare the Property as her main residence and if necessary rent out a room without any formal tenancies being effected.
      i am not conversant with this lenders criteria for its family mortgage but contact can be made direct without having to go via a broker.
      There May be other niche lenders who might look out of the box and this is where a good broker comes into their own.
      i do hope your friend achieves success in her quest for new accommodation.

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        #4
        I think Clydesdale bank offer "investment mortgages" which allow rich parents to guarantee the monthly repayments if their child is unable to pay. But the interest rates charged for the investment mortgages are not cheap.

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          #5
          Further to my note, suggest your friend contacts the Bath Building Society as they offer a Parental Guarantee Mortgage upto 95% , I do not know the complete details of the criteria but it is another avenue for your friend to investigate.

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