Can my parents get a Buy to Let mortgage and rent out to me?

There are legal rules and regulations of letting a property, regardless of if its to a family member or to the general public.

Renting from your parents isn’t a practical solution – your parents would effectively be masquerading as landlords when in reality they just want to help you live in your own property. They’d have to declare the rental income too and pay tax on any profit they make.

Family support

There are family assisted mortgages available to borrowers who have small deposits and whose family are able to help them get their foot on the property ladder.

Some don’t even need any assessment of your parent’s income and outgoings – they’re only needed as a safety net in the worst case scenario. 

Your parents or other family members need to be comfortable with either their property and/or savings being used as security for your mortgage.

Family members providing financial support should be aware that if you are unable to meet the mortgage payments, the security they have provided is at risk if the property needs to be sold and there is a shortfall.

The Bank of Mum and Dad

It's now quite common for young people, and particularly first time buyers, to receive a contribution from parents or other family members to help with a house purchase.  

We've carried out research, in conjunction with the London School of Economics, to look at how families approach this parental help. 

Off the back of this research we've produced a range of guides that highlight important things families need to consider. These include guides that highlight financial considerations and legal implications that families should be aware of, and how to approach the often difficult first conversation of financial assistance when buying a home. You can find out more here.