Small mortagage & some questions

Soot2006

Partner and I are thinking of finally buying a house.

70% deposit
30% mortgage

the tricky bit.

Partner employed. I am not. Partner should be eligible for the mortgage on his own. Should my name be on the mortgage papers as well, even if I am not employed or is there no need? Is it possible to have my name on there even if not contributing financially?

About 80% of the deposit money is mine. We would like to be tenants in common to reflect this. Partner and I will both pay off mortgage and additionally partner wants to buy his way up to 50% of the house (so need to do equity transfers every 5 years or so as his share increases).

Does any of this make any sense?
Or should we try to haggle sellers down to our 70% value and thus become cash buyers? Any advantages to having a small mortgage?

Reason we have to think about now (rather than wait for more falls in housing market, etc) is that my part of the deposit money is maturing this June, after being locked in for 8 years! It would be nice in these uncertain times to convert the money into a house.

koexelek

Soot2006 wrote: »

Should my name be on the mortgage papers as well, even if I am not employed or is there no need? Is it possible to have my name on there even if not contributing financially?

About 80% of the deposit money is mine.

You definitely want to be on the mortgage :eek:

You need to protect your own interests.

As long as your partner's income covers the mortgage alone, the lender should have no issue with you being on it too.
In fact, they will probably prefer it that way, because if there is ever a problem, they have two people to chase, rather than one.

getmore4less

70% dep
30% mortgage
80% of the deposit is yours.

so for a £100k place

£30k mortgage
£56k you cash
£14k his cash

So if he owns the debt then the initial shares are 56%:44%. ( same for any value)

Might be easier if you change the ratios by him just borrowing a bit more(or you put a bit less in) and go 50:50 to start will save all the hastle of working our new shares later.

So you put in £50k he puts in £14k and gets a £36k mortgage


He just pays all the mortgage and if you split you get 50% each of the sale proceeds and he pays off the outstanding debt from his share.

Any investents in the house are funnded 50:50 to keep the shares the same, so you keeping a bit of cash back helps there if you have no income to fund anything


You will probably need to be on the mortgage but as long as you agree the basic split then it should be OK.

Trying_to_be_good

But give it a go to haggle down to just using the deposit money (and having the house just in your name, in that case) - if you don't ask, you don't get!

Equity transfers carry a legal bill of about £500, from memory.

Soot2006

Thanks guys.

Good to know about the name on mortgage! Would be trying to keep this as small as possible, but understand that there are lower limits to mortgage borrowing? getmore4less, you made a lot of sense!!!! Thanks

Will deffo haggle of course - who knows, maybe we can use the deposit for a whole house by June (80% mine, 20% his - oh, the power!). Have only just started looking as don't want to fall in love with anything before the money matures. And maybe prices will drop by then ... or maybe my bank will go bust and my money will be gone.