Mortgage to buy flat in my name - bankrupt boyfriend

bigsmoke

Afternoon All

I usually hang out on the old style boards but am starting to look (again) into the possibility of buying a flat so am hoping that you lot might be able to help me with some advice.

A couple of years ago i looked into buying a flat on my own but decided that i wasn't quite ready for it (financially or responsibility-wise!). I am now looking again but have since acquired a boyfriend (very happily ). He, however, was declared bankrupt about 5 years ago so will not be involved in any purchase of a flat. He would, however, be living in it with me and contributing to the mortgage as though he is a lodger.

My question is, will the fact that my lodger has been declared bankrupt (and is my boyfriend) affect my mortgage application? Should I go out of my way to make this clear to any advisor that I speak to?

Ideally I would prefer us to buy in joint name with an agreement in place to protect my deposit, as he would not be putting any cash into the purchase but will be paying part of the mortgage (I have a £30k deposit). But I'm assuming that no-one will touch him with a bargepole until his bankruptcy has been cleared and he has spent some time building up a good credit rating?

any advice much appreciated - thanks!

bigsmoke x

Thrugelmir

Can you afford to buy the property, and pay the mortgage in your own right, without financial assistance at all from your boyfriend?

If so, do this. Then reconsider your options further down the line.

bigsmoke

Hi Thrugelmir

thanks for that. I don't know how much I can afford yet, I'm going to see a mortgage advisor but wasn't sure how much of this to mention to them as didn't want to scupper my chances before i'd even asked if you know what i mean?

from what i've seen on websites like moneysupermarket, I am limited by the amount of capital i can borrow rather than the size of the repayments (although not by much). So i was planning on asking whether i could increase the size of the mortgage by getting a lodger or not - not sure whether they even consider this kind of thing now?

I would be hoping to get a 2 bedroom flat, with the back-up option that (should we break up) i would get a lodger or rent the whole place out (or hope that i'd got a pay-rise, haha).

thanks

BS

Thrugelmir

The income from a lodger will not be taken into account for mortgage affordability.

Maybe buy what you can comfortably afford on your own. Then if longer term the relation works then up size. If it doesn't then you still have a home.

The "rent" could be saved into a joint savings account for the benefit of you both in the future. With a simple agreement as to how the money is divided if certain circumstances occur.

bigsmoke

aaah, thanks - i suppose that should have been the first question i asked! if the lodger income makes no difference then there's no reason to declare the other half's finances when i apply for the mortgage?

i suppose i want to be sure that i'm not 'withholding' information in a way that could come back and bite me but by the sounds of it there's no reason to mention it.

thanks very much for your help

bs x

Conrad

You would not normally mention a possible intention for a lover to subsequently move in. Think about it; People buy a house and then later (maybe 1 week later) meet a new lovger who might bed down - but they do not willy nilly go reporting this to the lender. Indeed no lending staff member themselves would report this if it happened in thier own life.

You can if you really want to, say he will reside in which case he has to sign a disclaimer waiving all rights tro dwell there if they need to repossess, but the lender then could decline the mortgage if nthye get wind of his credit status as he can be deemed (probably unfairly) to have sway over how you in trun will conduct your finances.