Girlfriends name on mortgage of parents house question

atlas2l8v

Hi just looking for some information

My girlfriend and her sister took over the mortgage on their parents house, their parents still live there and cover the mortgage.

Question is she now lives with me, and her sister is moving in with her boyfriend soon so will soon be getting put on our mortgages.

A friend mentioned drawing up a tenants agreement so that their income is not deducted from their disposable income when going for a mortgage is this right

Should one of these agreements be drawn up what implications will it have including tax wise

Doozergirl

Unless your girlfriend earns a sum significant enough to cover the income multiples on two residential mortgages, she can't have two.

If she wanted another mortgage, she'd have to seek 'permission to let' from her existing mortgage lender before she could take on another, provided there was enough equity in the property for the existing lender to agree.

atlas2l8v

cheers for the reply

So this tennants agreement he mentioned will not help ??

Catblue

I don't understand what you mean by tenants' agreement. And I also don't really understand who would be needing this tenants' agreement and for what reason. Sorry.

Are you planning for you and your girlfriend to be living alone with just yours and her name on the mortgage?

Or are you planning on having you, your girfriend, her sister and her boyfriend on your mortgage? Why on earth would you want to do this?

atlas2l8v

nooooooo :rotfl:

My girlfriend and her sister have a mortgage on their parents property, to which their parents pay the mortgage as they live there(dont ask long story)

Now my girlfriend lives with me (I have a sole mortgage) and will soon want to get a joint mortgage on my house

My mate is in the same position with my girlfriends sister

Does that make sense, someone told us they are able to do this if they draw up a tennants agreement as this allows for their income not to be discounted from the first property

Does this make sense ??

Emmzi

Do they have a buy to let mortgage at the moment? I think if they own the house and they are renting it to parents they need permission from the lender. The rental income will be taken into account when looking at new borrowing but won't totally offset the mortgage costs as there is more expense to running a house than just the mortgage.