Mortgage in partner's name, My Deposit

usman330

Wondering if anyone knows the answer to this.

Partner and I are looking at buying a house. She is full time employed on £20k year, im currently unemployed but should have a position within the next 6 months. Looking at purchasing for approx £100k.

I have saved up £30k and will be using this as the deposit for the house, and I will also be contributing 50% to the mortgage expense every month. Partner currently has no funds so cannot contribute to deposit.

Having initially spoken to a few lenders, they all say that adding me onto the mortgage with me currently being unemployed is detrimental and will lower the amount they are prepared to borrow us, as I am classed as a dependent. Therefore they recommend my partner takes the mortgage out in her name only, and the deeds will also be mirrored to her name.

Looking to the future, if the unfortunate were to occur and we were to split, I know that because my name is not on the mortgage or the deeds I would not be entitled to the £40k I put down as a deposit or any equity the property accumulates in the future.

I wanted to know if there was any way I would legally be entitled to the £40k if the unfortunate did happen. Are there any legal forms a solicitor can draw up to state that I will be entitled to the return of the deposit, and a 50% share of any equity the property has accumulated?

What I am trying to ask is if I am not on the mortgage or deeds, do I have any recourse for the funds I have put in and any price rise of the property in the future. Anything else I should be aware of if I put the 40k deposit in and let her take the mortgage out in her name only?

Many many thanks in anticipation

xylophone

Might be as well not to buy until you have been in a permanent job for a year? This should give your partner the opportunity to save something towards a deposit and give you both the time to consolidate your relationship. Who knows, you might even choose to get married?

In the meantime, ensure that you are earning the best possible rate of interest on your savings.

Once you buy the house, you can own it as tenants -in common. tp://www.yourmortgage.co.uk/first_time_buyer_mortgages/sharing#Joint%20tenants%20and%20tenants%20in%20common

usman330

thanks for the reply, ideally we would rather wait but currently renting which just seems like wasted money and with the job market the way it is it could be a long time until i have a secure income to show lenders.

With rents being so high at the moment it just seems to make sense to buy, as the mortgage repayments will be much lower than the rent we currently pay.
Will read into the tenants in common link, many thanks

RedFraggle

The only way she can use your money towards a purchase in her name is by you gifting it to her. You would have to declare that it was a gift and you had no vested interest in the property. My husband had to do this to contribute to the deposit for the house we live in that is in my name only. Not being morbid, but also bear in mind that were your partner to die there would need to be a will or you would have no legal right to the property.

Thrugelmir

usman330 wrote: »

With rents being so high at the moment it just seems to make sense to buy, as the mortgage repayments will be much lower than the rent we currently pay.

Rent vs mortgage is not a straightforward comparison. With ownership come all the costs for maintenance and refurbishment that your LL currently pays.

As has already been said. Better to wait until your situation becomes more certain.

Wh05apk

Unless you are looking to borrow to her absolute maximum based on her income then adding you should make minimal difference.

Few lenders will accept the deposit from a partner not on the mortgage.

Are you going direct or through a broker? this sounds like you are going door to door asking individual lenders? A broker may be able to find a lender who would lend you enough, but having both of you named. Whether you are named on the mortgage or not, you should still be named as a "dependent" therefore the amount lenders would lend would be the same.

usman330

Appreciate all the advice given. Waiting is probably the best option, however it will be difficult to save anything then as currently a large chunk of partners income goes on rent, plus the predictions are that mortgages products are going to get more expensive next year which is giving us the push to lock into a mortgage now.

Wh05apk, I didn't know mortgage lenders would not accept deposit from a person who will not be on the mortgage. I think this rules out the possibility of a mortgage on partners name only, and we will just have to put my name down as well but as unemployed. Hopefully the 30% deposit should be looked upon favorably and counteract the fact that im currently unemployed.

Wh05apk - currently we just inquired direct to high street bank type lenders without letting them put applications through and running credit checks as I know this is damaging, that was just done for initial advice. Will be going to a broker once I have some recommendations, need to start asking friends/family now who they recommend.