Signing a consent to mortgage lender

Baby_A

Hi

I am in the process of buying a house and one of the questions my solicitor has asked is:

If anyone else apart from myself will be in occupation of the property aged 17 or over on completion, because if there will, they will be required to sign a consent to my mortgage lender.

Does anyone know what consent this, if it affects anything and what it relates to?

I am buying the house just in my name and will have my mum living with me, what does this mean?

I would ask my solicitor but he has closed till the new year!!!

Many Thanks

Madjock

The consent has to be signed by anyone over the age of 17 to confirm that they have no claim on the property, basically. Ask your solicitor or broker for more information.

EDIT sorry! didnt see that your solicitor is closed! Ask the broker or lender, but this is basically what the form is for.

Bossyboots

Your mum will need to sign the consent to say that she has no claim on the property and that she understans that if you default on the mortgage she will be evicted from the house.

It might be worth mentioning to you that these forms have caused some consternation among local firms in our town and most are now refusing to witness them. The solicitor has to say that they have advised the person signing on the effects of the mortgage and any default and what this means. No-one around here is prepared to do that for the basic £5 swear fee so she might find that she has to pay an additional fee for the advice.

RiskAdverse100

It is not quite correct to say that someone who signs a consent form confirms they have no claim on the property.

It is sometimes the case that non-owning occupiers may have contributed large sums to the purchase price for example.

As Bossyboots says, the main reason that lenders want these forms signed is to make sure that an occupier cannot prevent the lenders from repossessing the property in the unfortunate event of this action being necessary.

However, another effect of the form is that an occupier agrees to any interest that they may have in the property, or may acquire in the future by, for example, paying half the mortgage or paying for improvements, always coming after that of the lenders.

So, if the property is repossessed, any interest that an occupier had would transfer to the money left over after the property had been sold and the lenders had deducted the amount necessary to pay off the mortgage.

Someone signing a consent form has to be properly advised by an independent solicitor who cannot possibly do this kind of work for a £5 swear fee!

RiskAdverse100

Rick62

A consent means that the other adult, your mum in this case, agrees to be bound by the terms of the mortgage in the same way that you are. In other words, if you default and they need to reposses the house she then can't claim any sort of tenant rights.

It is very normal and routine, after all, no lender is going to be prepared to lend (based on the open market property value and at residential rates) on a property with a sitting tenant.

If your mother had been renting commercially and had tenancy rights and her landlord asked her to sign a consent to mortgage then in that case she would be well advised to refuse unless, with lawyers advice, she had other sorts of protection. In your case, if you are going to obtain a mortgage then your mother will need to agree.

Baby_A

Thanks guys, just to confirm it wont affect my mortgage offer will it. They wont start looking at the whole application again etc will they?

I dont want my mums name to be dragged through that as she had some defaults in the past.

Rick62

No, your mums credit should have no effect. She is just agreeing to abide by the mortgage terms, you still have full financial responsibility.

Rick62

No, your mums credit should have no effect. She is just agreeing to abide by the mortgage terms, you still have full financial responsibility.

Rachman_2

It's effectively just an agreement to defer any interest in the property she may have by virtue of being an occupier, so that she cannot override the bank's interest and as such, if they repo, she's packing her bags too and she (and you) can't use it as an excuse not to be repo'd.

It's utterly utterly standard (and when you know what it's for, common sense too). Don't worry about it - just get it signed.

lottie78

Hi All

I'm new here - been a bit of a lurker - but this thread has spurred me to come out!!

I recently applied for a mortgage, through a broker, which was declined on the basis of 'adverse credit of someone financially associated with me'. Data protection etc meant the broker couldn't find out who that was, but thought it must have been my partner who has a CCJ against him.

My partner and I have entirely separate finances, we've never had any accounts in common, and the mortgage app was solely in my name, but nevertheless the broker thinks that the lender must have checked my partner's credit after he signed this consent, and that this must be the reason the app was refused.

I'm hopping mad about this - not least because I now have to 'confess' to having had a mortgage declined!!