Joint mortgage question

Phil_rich

Good morning all,

I am currently trying to find the best mortgage possible for me and have come up with 5.45% fixed for 2 years, however the nationwide are offering roughly 4.79% but my income doesnt qualify on their system to get me a big enough amount. However my dad said he will do a joint mortgage with me so I qualify with the nationwide, but does this mean he will have to go in the deeds of the house? or can i still have the house in my sole name?

Also if he has to go on the deeds will it be considered as his second house as he already owns his own. Therefore a second home would mean tax if we sell in the future.

Thanks for any help

Phil

AndrewSmith

Hi,

Whoever is named on the mortgage application as a borrower will automatically be named on the deed as co-owner.

Yes you are correct that should you then sell the property your father could face a capital gains tax liability.

Have you considered you father standing as Guarantor?

Phil_rich

Thanks Andrew,


The nationwide would not accept me with my father as a gaurantor, but could we get a joint 2 year fixed mortgage and then when I remortgage at the end of the 2 year period could I remortgage into my own name and just take my dad off or is there a problem with doing this.

Thanks again

Phil

AndrewSmith

Theoretically yes, however this will involve a transfer of equity at the point of re-mortgage to remove your father from the deeds.

It does all depend on the case specifics however, such as income, current mortgage etc etc.

Andy

Phil_rich

Thanks again,

So in theory we could get a joint mortgage, then transfer the house back to me at a later date? Would this thransfer definalty be allowed and would it have any financial implications?

Regards

Phil

AndrewSmith

It would be allowed under a transfer of equity, however you are best discussing the ramifications (legal or otherwise) with your solicitor before you go ahead.

Andy