Can I apply for a loan to help secure a mortgage?

cobbingstones

Hi all

My husband is the sole name on the mortgage we have applied for and I wanted to know if I could apply for a loan in my name to cover the shortfall. We had been promised this money by a family member (10K) but this is now not possible.

Could we do this? We have the money to pay it back so that's not an issue, but we're worried this may effect our mortgage offer???

Thank you

princeofpounds

What you are suggesting is not entirely clear, but if the mortgage is based solely on your husband, you can take out whatever debt you like and contribute towards the house purchase.

However, the bank will probably not want you on the deeds, because they want the only charge over the property if your husband defaults. So you will not be able to be a part-owner but instead will give the money to your husband.

If you are happy with this arrangement and can cope with the debt, then that is fine. It's slightly easier in that you are married so that you assets would ultimately be shared should there be a break-up, but to give you an idea of the worst-case scenario he could chuck you out of the house, and you would still be liable to make payments on the loan you took, and probably find it difficult to fund a place of your own.