borrowing money on my mother's property

[marcusa]

I'm trying to buy a business and to do it I need to raise �140k. I have already got an agreement to borrow half of the sum against my property, but can I borrow the other half against my Mother's property (with her permission obviously)? She's a pensioner and owns her own home which is worth �300k and I would be loaning �75k. Could I get a mortgage on her property?

m

[Oneeyedvic]

Short answer yes, but she will (probably) need to sign the documents in front of a solicitor who would have to give her advice.

[THECORBYLOON]

There was a programme on Radio Four called Moneybox the other week and they were discussing mortgages. From what they were saying, it's the reverse of what you said. If there's a mortgage on a property, for someone to be added to the deeds, that person must be included in the mortgage and there isn't usually a problem if that person has no adverse credit.

[Didwot]

It happens all the time. You borrow the money, your mother guarantees that you will repay the loan, and she gives a charge over her house as security for her guarantee.
Alternatively your mother could borrow the money herself, and then lend it to you.
I hope your mother is aware that she is putting her home at risk.