Mortgage Deposit/Loan Agreement

nottonight_josephine

Hi all, just wanted to get people's views on whether this is a viable option for my partner and I.

We live together in his house, and his fixed rate mortgage has now expired. He only has around 10% equity in the property due to house price falls, but we want to secure a new mortgage deal this year to avoid interest rate rises in the future. Obviously he needs to have a lower LTV to get a good deal, and between us we have enough savings to bring it down to 75%.

This is where it gets complicated! We still want to keep the mortgage entirely in his name for a few reasons (including my patchy credit history and the fact that I am currently self-employed with only 3 months of proveable income). In order to protect me in case soemthing goes wrong, we have talked about getting a solicitor to draw up a loan agreement saying he will pay me back my share of the deposit if we split up in the future.

Would this work? I know the bank might want me to sign away any interest in the property but am assuming this wouldn't stop us having an unrelated loan agreement between us? If it would work would it then be possible to add me to the mortgage in a couple of years?

Thanks

yelf

yes - thats how I bought my house. My mum lent me and the missus the deposit, and the mortgage is in mine and my fiancees name. Her solicitor then drafted up a legal agreement that we would pay my mum back the laon in stallments after 2 years.

As you say, you would have to sign away your rights with the provider.