We are looking for a buy to let mortgage but only have 15/20% deposit and as first time buyers most lenders are looking for 75% LTV so one financial advisor recommended using another property (Parent) as collateral for the first two/three years then for us to re-mortgage and take their house off the mortgage To me this seems like a good idea but apart from the obvious risks such as falling behind with payments and losing the both houses what are the other risks? how does it work? and is this beneficial to us?
Just a note i know we will receive charges for re-mortgaging
Thank you for any help