Mortgage not secured on house

LilacPixie

that is correct Daniel but is defaulting on a mortgage likely? I doubt you could raise 100k from anything other than a mortgage unless you have some wealthy and generous friends

Senior_Paper_Monitor

Yes - any default etc on the mortgage would impact on both your credit ratings equally.

A repossession would almost certainly involve sale at below market value and incur a n umber of other costs - but in the circumstances you describe you would have many options to avoid this anyway.

beecher2

Is there a reason for your concern regarding repossession? Any reason why you shouldn't be able to pay a £100,000 mortgage (which isn't that small a mortage in my opinion, but obviously that will vary from person to person).

rinkydinkpanther

I was going to ask why you just didn't buy a house for £600k, and have it wholly owned by your partner, but later you refer to her as your wife. If you are married then this has implications for ownership, I don't think you can ringfence your assets from a spouse. Anyway, if she has that kind of money to put down, she'd be well advised to spend a few quid on proper legal advice.

Senior_Paper_Monitor

I agree fully with the comment by Mr/Ms Panther about taking legal (or estate planning) advice - whatever happens in the future correct strucring advice at this stage may have major benefits.

But to clarify you can, in many cases 'ringfence your assets' from a spouse (again correct planning strategy in advance is vital).

When_is_the_reset?

rinkydinkpanther wrote: »

I was going to ask why you just didn't buy a house for £600k, and have it wholly owned by your partner, but later you refer to her as your wife. If you are married then this has implications for ownership, I don't think you can ringfence your assets from a spouse. Anyway, if she has that kind of money to put down, she'd be well advised to spend a few quid on proper legal advice.

Better still buy a house for £500k and invest the remainder in booze and cars.

It would be a much better use of the money, in my opinion.

Actually - £499,999.00 and save the stamp duty.

daniel_3-2

thank you all for your amazing advice so far - what a friendly forum!

Basically we are being realistic. If we were to separate (which won't happen but still...) then her, and my, futures need to be secure. Of course we can just go ahead and spend 600k but I don't want to do that because if something was to happen then I start from zero as my wife, rightfully, owns all the assets. I could save my salary but nothing beats investing in property so I want a stake in where we buy so that I have something to fall back on in the future. That's why I wish to contribute, say, 10%, of the mortgage costs even if I have to take a mortgage out. I cannot think of another way to invest in property unless my wife just buys a house in her name and I buy a 100K flat and rent it out as a separate investment. I guess that will incur some tax as a second home?

RDP/SPM - The advice about ring fencing assets is great and we will look into that as soon as we can. It is better for everyone that things are clear. It may sound very cold to be some matter of fact about this situation but one never knows how the future will pan out...

LittleMissAspie

daniel wrote: »

nothing beats investing in property

That's not entirely true. I wouldn't buy a house purely for investment purposes right now. Prices appear to be stable at the moment but I think they could go either way over the next couple of years.

There's a third option - buy for 500k, avoid the extra stamp duty, and invest the leftover money/savings from salary elsewhere and separately.

daniel_3-2

Thanks everyone. I think I am going a bit off topic in my last post. My initial query has been answered. Thank you all.

maninthestreet

So you're partner is, in fact, your wife? What hers is yours, and vice versa.