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mortgage for a student and his girfriends parent?
Money_saving_Martyn
Posts: 220 Forumite
Hi all
It's come to my and my girlfriends attention that we could be paying the same if not less in mortgage repayments (for a 2-3 bedroom house) than we are paying to rent (a bedsit).
Her father has offered to be named on the mortgage, so that the bank has someone to assess for the mortgage that actually has steady earnings, but it has also suggested that I be named on the mortgage. As a student I have no income (only loan/grant and a bursery) but my girlfriend and I can afford a suitable deposit and the monthly repayments based on this.
(girlfriend is not to be named on mortgage at the moment [unless advised to do so!])
How would a student with no income affect a mortgage application?
Do you have any advice to someone in this sort of situation (basically, a parent applying for a mortgage so that their son/daughter can buy a house)
Any advice much appreciated.
MSM
It's come to my and my girlfriends attention that we could be paying the same if not less in mortgage repayments (for a 2-3 bedroom house) than we are paying to rent (a bedsit).
Her father has offered to be named on the mortgage, so that the bank has someone to assess for the mortgage that actually has steady earnings, but it has also suggested that I be named on the mortgage. As a student I have no income (only loan/grant and a bursery) but my girlfriend and I can afford a suitable deposit and the monthly repayments based on this.
(girlfriend is not to be named on mortgage at the moment [unless advised to do so!])
How would a student with no income affect a mortgage application?
Do you have any advice to someone in this sort of situation (basically, a parent applying for a mortgage so that their son/daughter can buy a house)
Any advice much appreciated.
MSM
Please note: I am NOT Martin Lewis, just somebody else called Martyn that likes money saving!
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Comments
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The deeds to the house need to match the mortgage. So if the mortgage was in the name of you and FIL then so would the house deeds.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0
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Money_saving_Martyn wrote: »Hi all
It's come to my and my girlfriends attention that we could be paying the same if not less in mortgage repayments (for a 2-3 bedroom house) than we are paying to rent (a bedsit).
that sounds unusual. What interest rate are you using to work out the mortgage repayments? And what LTV would you have?0 -
LTV: 75%
Interest rate: various rates using various online mortgage calculators.
Would having a non-earner (ie. me a student) named on the mortgage not increase the interest cost?
ThanksPlease note: I am NOT Martin Lewis, just somebody else called Martyn that likes money saving!0 -
I put my bf who is a student on our mortgage, income 0. No affect, as far as I am aware.
But that was back in Feb 08, so perhaps a different climate!!Kavanne
Nuns! Nuns! Reverse!
'I do my job, do you do yours?'0 -
The deeds to the house need to match the mortgage. So if the mortgage was in the name of you and FIL then so would the house deeds.
Not totally true, you can have only a single name on the deed but its upto the individual lender. But the 2nd name on the mortgage would require signed documentation from a solictor to show they have received advice that they have no claim to the deeds or the house and are only named on said mortgage. Its rare but does happen sometimes in council right to buy where only 1 name has met the 2yr qualifying period. Does take extra effort where solictors are concerned also i.e. deed of trust etcCredit card and overdraft at 18. 2 loans and 3 storecards at 20. University education flushed down the toilet through debt at 22. Car finance at 23. Car repossessed at 24. Rock bottom at 25. Learnt my lesson 26-33. Now 34 with a mortgage on an affordable house, a car paid for with cash and a bank account in credit. I learnt the hard way.0 -
Lloyds (C&G) would have lend us less with having my unwaged wife on the mortgage as a financial dependant rather than in sole names, so it does depend on the lenderNothing to see here :beer:0
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