Not being named on mortgage with partner

doodah

Hey everyone.

Here is a quick summary on my history: in 2006 I got into debt and ended up missing payments and defaulting on some, I had 4 credit cards, a loan and an overdraft which including late payment fees totalled about £8k by the end of 2006. I got a CCJ in Feb 07 for around £300 which was satisfied by July 07. At the beginning of 2007 I got myself sorted and onto a DIY DMP and haven’t missed a payment since, I’m now about 7 months away from being debt free!

Anyway, my partner and I are looking at buying a house together, probably the beginning of next year. He has a property to sell and should make around £75k-£100k profit on that which will obviously be the deposit (I’m not sure exactly how that works!). My question is, because of my dodgy credit history would it be better to get a mortgage in his name only? And how would this affect me if things were to go pear shaped (we’re not married) is there anything that can be put in writing to say I am entitled to a share as I’ll be contributing to the mortgage? I am hoping nothing will go wrong in our relationship but I have been stung by a partner before (see above debt story) and just want to make sure I’m covered.

ETA: I've just noticed how out of date my signature is :rotfl:

Cannon_Fodder

It might not be a case of "better to". It might be the only way.

Lenders would probably reject a joint application with that history. At least the Lenders with the best deals would, who might otherwise be attractive to someone with a £75k-£100k deposit.

Personally, as you still have some way to go to be debt-free, I would keep it simple.

Subject to discussion with the partner, of course, I'd lean towards just paying a basic 'rent'. i.e. half of the interest on the mortgage, sort of amount.

Not contributing enough to feel the need to be "earning" equity - or risking losing any, should prices resume falling.

That way you can concentrate your spare cash on clearing the debts.

As there is pretty much no chance of you raising any money to buy out a chunk of the property, until well after your debt history has improved for some time, I don't see the point of the two of you trying to draw up a complicated document that can accomodate the possible scenarios, should you split up.

In another couple of years, if things are going well both financially and romantically, review and adjust accordingly.

doodah

Thanks for your reply, very helpful :-)