Does partners contribution count?

KRB2725

When applying for a mortgage in a single name, would mortgage companies consider the financial contribution being made by a partner as additional income and therefore lend against it?

kingstreet

If the partner has an income and is party to the mortgage - yes. If the partner is not a joint applicant or has no income, no.

In fact, if the partner has no income and they are joint applicants they become dependent and actually reduce the earner's borrowing power.

KRB2725

kingstreet wrote: »

If the partner has an income and is party to the mortgage - yes. If the partner is not a joint applicant or has no income, no.

In fact, if the partner has no income and they are joint applicants they become dependent and actually reduce the earner's borrowing power.

I have an income, but don't want to be a joint applicant. Thanks for your reply.

kingstreet

You've got two threads running and I'm getting confused.

You don't want to be a joint applicant or you feel you can't be for some reason?

The more information we get, the better the information and help you'll receive.

KRB2725

Sorry, didn't think to add it on to my previous thread.

My partner & I live together with 1 dependent. We rent the house we live in and are currently trying to sell one that he owns.

We have a 150k deposit and need to raise 150k on his 30k salary until the other (unmortgaged) house sells.

I have an income, but it is in the form of PHI and because of that and a not great credit history, I am too worried about a joint application.

I contribute financially to the household and thought my partner may be able to declare it as additional income.

kingstreet

OK. That clears it up.

Is your partner's property empty? Could it be rented out?

He could raise a BTL remortgage on that property, based on the rental income alone, using the proceeds to increase the deposit further on the one you want to buy. Some lenders will ignore the BTL in the background, or at worst treat it as a credit commitment.

If he borrowed say £60k that way, he could reduce the mortgage on the new property to £90k, well within income, pay interest-only on the BTL (the mortgage interest may be offsettable against the rent for tax purposes) and not have to worry about how long it might take to to sell the first house.

Admittedly there's a lot to being an accidental landlord and you'd need to take some time to research the legal implications and requirements, but it looks like a more solid solution than trying to get five times income.

A good whole market or independent broker would be a good start for the best way to approach this.

KRB2725

Thanks for your advice, will get in touch with a broker.