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Mortgage payment insurance for unemployed to begin with?

Three of us a going in on a mortgage together (a single person and a couple). One half off the couple is unemployed with sporadic income (but some savings that could cover payments in the short term if all income is lost). The employed half of the couple could conceivably cover payments too.

How should we deal with this in our Declaration of Trust regarding the clause about income/payment insurance?

https://forums.moneysavingexpert.com/discussion/comment/47547735#Comment_47547735
7. COHABITANTS must put in place and maintain accident, sickness and unemployment protection sufficient to cover their share of the mortgage payments.

Comments

  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Beginning to sound a nightmare scenario. Perhaps better to wait until the partner concerned has a stable income before purchasing a joint property.
  • Sheveko
    Sheveko Posts: 77 Forumite
    No we're all confident. In any case contracts are signed and exchange is taking place today.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Confidence is one thing. Reality is another.

    The declaration of trust you all intend signing, seems in part worthless. If one party cannot adhere to one of the terms at the outset.
  • Sheveko
    Sheveko Posts: 77 Forumite
    edited 12 October 2011 at 3:03PM
    The trust is a draft for discussion. It's not the one we intend to sign. That's why we're asking for advice on other ways to deal with the matter. We're well versed on reality thanks. If we wanted patronising advice we can go to our solicitor for that.
  • Meeper
    Meeper Posts: 1,394 Forumite
    Or you can come on here, where you will find that in abundance.

    Why not have the Declaration of Trust between one individual and one couple, where the couple is treated as a single entity for the purposes of the document?
    I am an Independent Financial Adviser
    You should note that this site doesn't check my status as an Independent Financial Adviser, so you need to take my word for it. This signature is here as I follow MSE's Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Sheveko
    Sheveko Posts: 77 Forumite
    Thanks Meeper, yes we did wonder that. Might be a good idea, then the couple could perhaps sort out any details in the cohabitation agreement(s).
  • Meeper
    Meeper Posts: 1,394 Forumite
    Exactly. You have the arrangement with the couple, then the couple have their own arrangements to deal with breakdown of their relationship, with reference to the group arrangement.
    I am an Independent Financial Adviser
    You should note that this site doesn't check my status as an Independent Financial Adviser, so you need to take my word for it. This signature is here as I follow MSE's Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Meeper wrote: »
    Exactly. You have the arrangement with the couple, then the couple have their own arrangements to deal with breakdown of their relationship, with reference to the group arrangement.

    To ensure that such agreements are legally enforceable all parties should seek independent legal advice.
This discussion has been closed.
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