Thank you both for the replys.

Its definitely worth thinking about.

On the face of things I do not see any issue wth what you are doing although any Buy to Let lender is going to insist on a minimum of 25% deposit/equity in the property before they will consider a mortgage on the property. This is on top of a minimum of £25,000 earned income that you must already be receiving before the application is made.

Whether you plan to fund this yourself or whether your parents will gift you the 25% out of the property value is up to you and your parents, a lender will be happy with either option.

If your parents are state dependant then you may just be able to qualify for a residential mortgage on the basis of a dependant relative. It will need to be discussed in detail with a mortgage professional so I would suggest you organise a meeting with your local mortgage adviser to discuss.

I do think you have options here but it will depend on the property value and the mortgage balance and of course the usual things like credit score and your own affordability.

There are details about half way down this page

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/BenefitsTaxCreditsAndOtherSupport/On_a_low_income/DG_180321

it states that interest will be paid for "up to two years only if you are getting income-based Jobseeker’s Allowance". It is possible that other benefits will be available so you should research this before taking any major steps.

If you sell a house at auction without a reserve, it will sell quickly but the price is usually lower than would be obtainable using an estate agent and putting the property on the market for a couple of months, starting with what is wanted for the house and then lowering the price as appropriate if it doesn't sell straight away.

Yes, you can buy the house and rent it to your parents. Provided it's all done at fair market prices, I can't see any problem with this.

Hi

The inlaws mentioned they might sell their house in an auction, they have had an interest only mortgage for quite a few years so would need to pay the capital off if they sell.

the theory is this:

sell the house in an auction to get a quick sale, pay the mortgage of and pay a few debts which they owe.

they dont work and the dss have been paying the interest on there mortgage for the last 18 months and they said the dss only pay for 2 years and after that they stop paying (?) which would mean the house would be reposessed beacause neither of them work.

so i'm thinking could I buy the house of them on a buy to let and then let them stay in the house while the dss pay me the rent?

I dont know how much debt they are in but they wouldnt have much left from the sale of the house and I dont know how the dss work.

im hoping someone could shed some light on this for me?

regards