Buying a house together (2 names on title deeds but 1 on mortage)

katy123

Me and my partner (not married) are trying to buy a house together. I have the deposit but no income, he has the income but no deposit. We want a 3.5 x mortgage based on his income (circa 122.5k). After reading from various sites, if a mortage is held jointly then you can probably get 2.75x but if it were to be held singlely then can probably get 3.5x (of course can depends on affordability factors)-but thats the traditional average.

So, with out aim of wanting a mortgage 3.5x from his income, then it would make sense to have the mortgage in his name ONLY. as i am putthing down the deposit (around 25%) can this be shown on the title deeds?

"me-25%, he-75%"???

or is it a requirement by the mortgage company that the names on the title deeds must be on the mortgage aswel? I know for sure you can have it the other way round where 1 person is on the deeds title and two in the mortgage.

Thanks

Hippychick

No you can't register a property in 2 names and 1 on the mortgage. If he was to default on the mortgage and the lender wanted to repossess they won't be able to because a second person is on the deeds, no lender would entertain that idea.

Have you tried enquiring to see if you can go on the mortgage? My husband and I were in the same scenario, our deposit came from me yet he is the sole earner, we managed to obtain a joint mortgage with the abbey who based it on affordability rather than by an income multiple.

keith969

I think you'd be wise to have a quick chat with a solicitor first. You do want the mortgage and deeds in joint names but (sadly) you should think carefully about protecting yourself - you would be wise to stipulate that you are 'tenants in common' rather than holding a 'joint tenancy' in which case the proceeds after a sale will be split in two regardless of what each of you has contributed.

By default if unspecified you will be joint tenants if I recall correct.

happyhunter

katy123 wrote: »

Me and my partner (not married) are trying to buy a house together. I have the deposit but no income, he has the income but no deposit. We want a 3.5 x mortgage based on his income (circa 122.5k). After reading from various sites, if a mortage is held jointly then you can probably get 2.75x but if it were to be held singlely then can probably get 3.5x (of course can depends on affordability factors)-but thats the traditional average.

So, with out aim of wanting a mortgage 3.5x from his income, then it would make sense to have the mortgage in his name ONLY. as i am putthing down the deposit (around 25%) can this be shown on the title deeds?

"me-25%, he-75%"???

or is it a requirement by the mortgage company that the names on the title deeds must be on the mortgage aswel? I know for sure you can have it the other way round where 1 person is on the deeds title and two in the mortgage.

Thanks

Yes you can. With HSBC, they can offer you a mortgage in sole name for a house bought in joint names.

The HSBC mortgage will say something like 'Mortgager: Mr. XXXX, Miss YYYY' and then 'Borrower: Mr. XXXX'

This arrangement can only be made direct at a branch and not via the phone.

Hippychick

happyhunter wrote: »

Yes you can. With HSBC, they can offer you a mortgage in sole name for a house bought in joint names.

The HSBC mortgage will say something like 'Mortgager: Mr. XXXX, Miss YYYY' and then 'Borrower: Mr. XXXX'

This arrangement can only be made direct at a branch and not via the phone.

Thats for a mortgage in 2 names and deeds in 1, so is the wrong way round.

Banks will not lend if all of the parties named on the deeds are not on the mortgage. Their security is simply not safe. If they ever wanted to repossess they won't be able to because someone else has an interest in the property.

gauly

Even a bank who will lend on a mortgage in one name for a house in two names isn't going to in this case - because the person getting the mortgage has no deposit and there is no such thing as a 100% mortgage at the moment. (ie. he owns 75% of house with a 75% mortgage, she owns 25% of house outright).

Just go and get a normal joint mortgage - with a 25% deposit I bet you will have no problem at all getting 3.5x income.

Richard_Webster

The HSBC point is right. House in 2 names, mortgage in 1. However second person has to sign to give security on the property so the only real difference is that if they are both evicted HSBC can only chase the single borrower for the shortfall, if there is one.

I think though that OP has slightly missed the point and confused lending criteria with the number of the borrowers. So if the lender is saying 3.5x one income or 2.75 x joint then these are alternatives. If 3.5 x one income produces a better result then that shouldn't normally stop lender lending to both. Years ago my wife and I got a joint mortgage from the Halifax when my wife wasn't working, and there will be thousands of people in that kind of situation. Most lenders don't care if there is an extra borrower who has no income or little income, they only get wary about extra borrowers if they have an adverse credit record (bankruptcy, CCJs, etc).

ahusband

There is something called a declaration of trust which your solicitor would draw up. this would state what percentage you own.