Boyfriend applying for mortgage- a couple of questions..

nichno

Hi,

Could anyone help with a couple of questions? My boyfriend is about to apply for a mortgage which will be in his name but we've decided to move in together so i will live there and pay my share of mortgage/bills. He requires a £100000 mortgage and he is earning £20000 with six monthly pay reviews. He will put down approx £20000 for the deposit but is a mortgage co likely to want to lend x5? He has had a previous mortgage before. Also I have a poor credit record unfortunately so i didnt want to damage his credit record/attract a higher rate by applying with him. Is there a requirement for him to disclose that i will be living there, will they credit check me if he does have to disclose? Thanks Jen

MortgageMamma

Hi Jen

If you are over 17 and not party to the mrotgage he will have to declare that you live there. They won't credit check you unless there is a financial association between you and the boyfriend i.e. you have a joint account or something. 5 x income is quite a stretch for someone on £20k, only a handful of lenders will do that.

herbiesjp

Indeed - if you are going to live there, there will be a section that asks if anyone else over 17 that is not party to the mortgage will be living there. If so you normally have to put the name, date of birth and relationship.

This will not impact on your boyfriends application and you will not be credit searched, as you will not be a party named on the mortgage

Borrowing £100k and putting down £20k = £120k purchase price.

What goes in your favour is the fact you have nearly a 20% deposit, so lenders can be more flexible with their lending multiples etc.

However you do not state what your income is, but whatever you contribute should ease the burden of borrowing 5 times just on the basis of your boyfriends income - how much do you earn?

HTH

nichno

Hi Thanks for your useful replies, i earn £15000 a year.

herbiesjp

Although you are not technically part to the mortgage, the fact you have £15k income means that you are at 2.9 times your joint income - which means that your affordability is greatly improved.

HTH