Taking over partner's mortgage

theloir

Hi,

Just wanted some advice as to whether this is feasible.

My partner has a house to which she owes the deeds, however, due to her divorce/child situation she could only be put on an interest-only mortgage. She has been told that she has to go on to repayment next summer which means things are very tight and she cannot afford to go back to work until the youngest child is in full-time education.

Can I step in? I take it that it will be a new mortgage application? I've never had a mortgage so in effect I'm a first-time buyer, but my deposit is non-existent as it is tied up in the property already (approx 80% LTV). Can it be done?

Thanks in advance!

kingstreet

If her lender approves, you could be added to mortgage and deeds via a transfer of equity. The cost will be between £300 and £500. Otherwise, you could jointly apply for a remortgage in joint names, changing the deeds during the conveyancing process.

theloir

Hi,

Thanks for your advice.

If we take our joint salary then we just fall short, however, if it is just me then my salary covers the mortgage value.

If we're both on the deeds wouldn't it then be seen as a joint application?

Thanks again.

kingstreet

theloir wrote: »

If we take our joint salary then we just fall short, however, if it is just me then my salary covers the mortgage value.

I've looked at that from every possible angle and I can't see how you can possibly get more with one income than with two. Can you explain?

theloir

Hi,

She's a stay at home mother and hence her income is negligible to say the least. AFAIK you get a reduced multiplier when it's a joint effort. Whereas if I'm on this solely then the multiplier is higher.

kingstreet

theloir wrote: »

Hi,

She's a stay at home mother and hence her income is negligible to say the least. AFAIK you get a reduced multiplier when it's a joint effort. Whereas if I'm on this solely then the multiplier is higher.

Ah. I see. So you're falling foul of the dependents being taken into account and her being treated as one because she doesn't work? Which lender is it?

Thrugelmir

theloir wrote: »

Hi,

She's a stay at home mother and hence her income is negligible to say the least. AFAIK you get a reduced multiplier when it's a joint effort. Whereas if I'm on this solely then the multiplier is higher.

Dependents may well affect the actual advance you could be offered. As they will affect affordability.

theloir

I must admit we haven't approached the current lender, Halifax, as yet but just wanted to put the feelers out there to see if what we want is possible.

Thanks

kingstreet

Halifax will take into account things like Tax Credits and Child Benefit and do have generous income multiples of 5x for those with a good credit score. You may be surprised.

Have you tried the affordability calculator on their site?

Here's a link to the one brokers use;-

http://www.halifax-intermediaries.co.uk/tools_and_calculators/mortgage_affordability_calculator/default.aspx

have a play with the figures and see what you get.

theloir

Cool, thanks for the link. I'll sit down with my partner and go through it all. You never know, we may get lucky :-)

CLAPTON

why don't you just pay something towards the mortgage?
why the need to remortgage at all?