Re: AGHHHHHHHHHHHHHHHHHHHHHHHHHHHHH

newbie2009

Hi there.

My partner is taking out a mortgage on a house and due to a shambolic credit history (which is in current repair/past bankrupt a long time ago) we have decided it's best for him to take out the mortgage (also he has a deposit & I don't) and for me to take out a loan for a deposit of £10,000 and put it towards the mortgage then get a legal document drawn up showing I own a third.

Obviously I know this is not perfect but is it ok/legal to do? I don't want to do anything untpward however don't want to be putting money into a house I don't own.

Difficult I know

Radiantsoul

You will need a solicitor to do it. But it doesn't sound impossible. The property will be in names and so will the mortgage liability. However he will assign a share of his equity in the property to you.

The issue would be deciding what your interest in the property would be(how it would be calculated). You would also need to register a charge at the land registry against it. The mortgage company might be able to prevent that, certainly you would rank behind the mortgage company.

The risk for you is that you wouldn't be able to sell the property. So if you ever split up you would never get your £10k back. Your loan would almost certainly need to be unsecured.

Without sounding to rude I would be careful about entering into this kind of agreement with anyone.

newbie2009

I think ideally once my bankruptcy is cleared i'll get added as transfer of equity, but i guess i dont have any other choices really.

dwsjarcmcd

How are you going to get an unsecured loan of £10,000 in the current climate with your credit history? I would suggest that will be equally as difficult to get as a mortgage (if not more so)

_Andy_

dwsjarcmcd wrote: »

How are you going to get an unsecured loan of £10,000 in the current climate with your credit history? I would suggest that will be equally as difficult to get as a mortgage (if not more so)

Agreed. Also I doubt you'll find a loan company happy to lend for that purpose.

newbie2009

My credit rating is fine as it was cleared in june 2005. I cannot get a mortgage as you have to declare the bankruptcy where as my bank take into a/c my earnings etc

_Andy_

Have you asked the loan lender whether they're willing to lend for the purposes you want?

dwsjarcmcd

newbie2009 wrote: »

My credit rating is fine as it was cleared in june 2005. I cannot get a mortgage as you have to declare the bankruptcy where as my bank take into a/c my earnings etc

If you have that confirmed then fine, but please don't agree to anything legal and binding until you are 100% cetain you can raise these funds, paricularly bearing in mind Andy's comment above. Just because the insinuate that they will lend you money, doesn't mean they will when you atually apply and they dig around.