Tricky FTB situation

adamplatt

Hi,

Me and my girlfirend have been together 2 years now and wanting to buy a house together. I earn £29k with another £900 extras per year (not 100% guarenteed). She has 2 jobs with earning about £2.9k and £4.5k. We have around £41250 for a deposit, maybe 42500 if needed. We have good credit ratings and been in our jobs for at least 2.5 years. I have a student loan of around 110 a month as out goings (only 3.5k left to pay there though).

Now the tricky bit comes from the fact her job which earns 4.5k pays her in cash so we've been told a lot of providers won't consider that. It is a small shop which is also about to be sold but she should keep her job ok.

Now we were able to get an AIP using just my wage and her lower wage to borrow 123750 over 30 years so we could bid up to 165k. The house we really like is up for 180k and our offers up to 165k were refused but we were lead to believe 170k is the number the seller wants.

What we've been told is that I could get a mortgage for the £127500 over 30 years that is needed as sole application in my name but then my girlfriend shouldn't really be living with me as she could be seen an expense as her main income is the less provable cash payments. Is this correct?

It was also mentioned that after 6 months living in the property she would get certain rights to the property? If it was a joint application we were going to go to a solicitor and get an agreement to safeguard my money (95% of deposit is mine and my parents but on sole application we could do 100% of it). I imagine we couldn't do this anymore if she isn't on the mortgage? So where would I stand in terms of protecting my and my parents investment?

Sorry if I've confused anyone and thanks for any help or advice.

Thrugelmir

Being paid in cash shouldn't be issue. Your girlfriend should still be registered as an employee and receive payslips etc. Most importantly she should receive a P60 at the end of each tax year.

If this to be your joint home, and not an investment for you and your parents. Then you should include her on the mortgage application from the outset.

Use your solicitor to draw up an agreement detailing the split of the deposit should you split. Not an usual situation.

adam.platt

Thanks,

Well her pay slips consist of the amount written on the pay packet but she could get her employer to write something bette. She does have p60s from the last 2 years. Would the fact the business is being sold make an issue?

As I said we've been led to believe cash payments would restrict who would lend and make it a lot of hassle getting a mortgage.

Investment was probably the wrong word to use, the money will be a gift and it will be our joint home.