Mention the girlfriend or not?

mc2705

Hi all

I made a thread last week with a few mortgage queries but can't seem to find it now! I know one person had replied with the answer to one of my questions but there was another than I am wondering what to do about.

I have around £10,000.00 saved away and am looking at getting myself on the property ladder some time this year. Probably a part ownership type purchase as I am looking for a home not an investment.

Anyway at the moment I am living with my girlfriend in rented accommodation. All the bills come out of my account and she gives me £400 a month towards everything. This would continue if I was to buy somewhere as the outgoings would not change a great deal.

The trouble is my girlfriend is currently paying off an IVA (for debts run up before I met her!). Because of this obviously she will not be buying into any home with me!

But she does contribute £400 a month towards my living costs. Would a mortgage company run a mile if I was to mention this extra source of income? We have no joint accounts and she would not be part of any house purchase (other than living there afterwards).

Am I better off mentioning her (for the £4800 per annum extra) or not mentioning her (because of her awful credit rating!)?

Any

Can you get a mortgage solely in your own name? If so, I wouldn't mention her myself.

mc2705

I could just about manage it (depending on how much it actually is of course!). I have been putting a minimum of £200 a month away as savings and waste at least another £200 on smoking which I keep meaning to give up. I also spend around £250 or more a month on going out socialising, so I do have scope to seriously reduce my outgoings if I ever split with her.

If you meant can I get a mortgage without mentioning her, then I am limited more by my deposit than my earnings (assuming max mortgage is 4x earnings). So I don’t really need to use her money there either.

I was thinking it would make my mortgage application look better if I was to add an extra £400 a month on. But the fact of her IVA and poor credit made me think I was better off pretending she doesn’t exist.

happybroker

Her income wouldn't be taken into account by the mortgage lender anyway to be fair. You will need to mention the fact that she will be living with you as that will be one of the questions you are asked by the solicitor and the lender.

Conrad

No lender will use her income as to so do would breach the rules on responsible lending. Imagine you at a repo hearing in 5 years time, the judge might say to your lender - "AnyBank plc chose to bring about a loan on the basis of some informal arrangment between you and your then girlfreind. As such the Bank knew the risk of her ceasing payment was a real risk, in which case I am declining thier erquest to repossess your home, case dismissed'.

The lender would fall foul of responsible lending and might not bea ble to recover thier assets!

Any

I thought that he was considering to buy the house together with her?? He mentioned deposit from her etc?

Then they would take her income into account (but also her bad credit rating).

mc2705

No I would be buying the place by myself and the deposit would be from me alone.

I just remembered when my parents split up my mother had to take on the mortgage by herself. Both me and my brother were working and her mortgage broker took into account the money we gave her every month. We had to sign something to say we would leave the house if it was ever repossessed (unlikely as she had such a tiny mortgage!).

I guess rules have changed since the credit crunch but I was thinking I could use the £400 a month my girlfriend gives me in a similar way to what we did with my mum. As she is insolvent (and taking into account the above posts!) I think I will forget she exists when it comes to mortgages.

ninky_2

it's worth asking your solicitor about it. also, consider what you will do if your girlfriend decides to stop paying the 400 quid or can no longer pay it. if she is living in the property it will be her home after all - i don't think you can turf her out. you may need to put something formally in writing.

opinions4u

Mention the girlfriend or not?

I certainly wouldn't mention her to the wife.

maninthestreet

Depends how good looking she is.

mc2705

maninthestreet wrote: »

Depends how good looking she is.

That’s a good point. Is it illegal to make "extra" cash out of her?