unmarried couple, two principal residences?

The_Road_Warrior

The_J wrote: »

Now you are coming across as childish and are belittling your original point.

Childish? Ahem:

and don't you dare suggest I don't

Remember the above?

I picked you up on your original post because I found it quite belittling in tone. All you had to do was say your bit or plug your fave mortgage advisor...but no, you had to make a general swipe at all those who took the time to reply!

If the OP wants one opinion then I'm sure she can get it, but on this forum she will get MANY OPINIONS so please respect those opinions and if you disagree with one opinion or many opinions then highlight them as opposed to making sweeping swipes at the entire thread!

The_J

The_Road_Warrior wrote: »

Just a second, so we're all to sit back, get blanket blamed and when one of us disagrees we're then labelled a 'moron'? Is that what you agree with? I know the guy or bird plugged you on the reply but you only have to repay that by thanking them back eh?

And then they announce:

Seriously? You've completely missed the point yourself!

I'm sorry but your first post was a very useful one drawing on personal experience and exactly what this thread needs however you are now on the defensive and swinging wildly. You have taken what I said to mean everyone bar Dave, this is not true, I also agreed with everything that zzzLazyDaisy was saying.

If someone post something in a thread and it is wrong it should be illustrated. Dave Ham has explained exactly why they were wrong. If someone keeps on posting stuff that is wrong as fact, misleading people looking for advice then they should not be allowed to post further on this forum.

edit: You are embarrassing yourself now. You have misinterpreted what I said as a personal insult and for that I apologise, if you re-read it you will see it is clearly not my intention.

nuki

Dave Ham - I actually posted some clarification earlier - the application for the two mortgages would not be made at the same time, does that make a difference?

I called Halifax this morning and they told me that normally, we would need to have 10% downpayment on one property and 25% on the second home (not BTL, just 2nd main residence). However, they said this rule was valid for married couples and they will speak with their underwriters to tell us whether the situation was different for unmarried couples/just friends purchasing together.

We're currently renting together and originally we were planning on just renting separately when our current tenancy agreement expires. However, if the 2 residential mortgages situation is possible we're willing to both move into the first property that I buy, and then he moves out when he finds the second property after several months. We've been both actively looking for flats for a while now, and there is a property I'm considering to make an offer on, close to the asking price.

Now, we do realize that 2 joint mortgages comes with a lot of liability but what we decided to do - obviously amicably - to cover completely separately the two flats (financial obligations and losses). So his own deposit money go into his property, mortgage payments, legal expenses, utilities etc.

If he loses job and needs to sell earlier than anticipated he would cover all losses and legal expenses related to his property even though legally speaking I would be still liable for mortgage payments. The same would be valid for my property. We are both very reasonable individuals and we think we are able to honor this.

Last point -- we are planning this as a temporary situation and as soon as my salary increases by a bit and we have some history of child maintenance payments, we can do the buy out.

Any other ideas? Pitfalls we're not seeing?

Thanks again, this is one useful forum

zzzLazyDaisy

Personally I think you are over complicating things.

You are in rented accommodation now. If you separate and move into a rented place on your own, you will have an initial AST for 6 months. This will enable you to establish a history of maintenance, and will also give you an opportunity to look round for somewhere to buy on your own, so that when you do move into the place it will be yours to stamp your mark on as you wish, without all the complications.

The_J

As long as one of you isn't going to go postal and make crazy demands, as long as affordability stacks up and you are aware that it may take some time before you can buy the other out then it should be possible.

The married/unmarried stuff is rubbish, I probably wouldn't even do it with the same mortgage company. I.e buy your place with a flexible lender (who can do bigger income multiples as well as utilising child maintenance, benefit and tax credits) and then buy the second place as a second home (75% LTV as Halifax said).

zzzLazyDaisy

The_J wrote: »

The married/unmarried stuff is rubbish, I probably wouldn't even do it with the same mortgage company. I.e buy your place with a flexible lender (who can do bigger income multiples as well as utilising child maintenance, benefit and tax credits) and then buy the second place as a second home (75% LTV as Halifax said).

Sorry to be picky, but OP plans to buy the first place with jointly with her OH, and then subsequently the '2nd home' again jointly with her OH. So child maintenance won't come into the equation in that scenario as the mortgage will be obtained on both parties' incomes.

It is only if OP wishes to go ahead and buy a place on her own, as a single parent, that child maintenance becomes an issue.

OP, I know this is off topic, so apologies, but have you checked the turn2us website to see what working tax credits you will be entitled to once you are on your own (bearing in mind that maintenance is not counted as an income for tax credits).

nuki

The_J wrote: »

As long as one of you isn't going to go postal and make crazy demands, as long as affordability stacks up and you are aware that it may take some time before you can buy the other out then it should be possible.

The married/unmarried stuff is rubbish, I probably wouldn't even do it with the same mortgage company. I.e buy your place with a flexible lender (who can do bigger income multiples as well as utilising child maintenance, benefit and tax credits) and then buy the second place as a second home (75% LTV as Halifax said).

Thanks but again, we can't buy the 2nd home at 75% LTV. I wouldn't even be here to ask these questions if one of us had the 25%.

I don't qualify for any benefits or tax credits other than child benefit, even as a single parent. We ran the affordability numbers with Halifax on basic incomes only plus child benefit added to my income, not counting any bonuses, car allowance or child maintenance payments.

@Daisy yes I agree we are complicating things but we're trying to avoid signing two new ASTs which would take us into the next year, moving home twice, moving schools for our daughter, etc.

The_J

nuki wrote: »

Thanks but again, we can't buy the 2nd home at 75% LTV. I wouldn't even be here to ask these questions if one of us had the 25%.

I don't qualify for any benefits or tax credits other than child benefit, even as a single parent. We ran the affordability numbers with Halifax on basic incomes only plus child benefit added to my income, not counting any bonuses, car allowance or child maintenance payments.

@Daisy yes I agree we are complicating things but we're trying to avoid signing two new ASTs which would take us into the next year, moving home twice, moving schools for our daughter, etc.

My advice was to go with a lender who takes a flexible approach with regards maintenance now so you can stay with them in the future. Important if you have ERCs. (side note: car allowance is fine to use).

What I think you will have to end up doing is buying the first place in joint names, the second in just your ex partners name (at high LTV) and retain some of his deposit to buy out his stake in property 1 at either that point or some point in the future.

edit: I think it's important you speak to a broker/IFA to be honest, as you can see quite clearly on this thread that the layman doesn't understand your situation (only someone with a finance background is going to have the foresight to anticipate your future situation) and speaking to a lender directly will be tricky.

nuki

The J, we thought about the scenario where we would buy one property in both names and the 2nd one in his name only, but he would have to pass the affordability test on the total combined mortgage amount on his income alone, no?

We have a call with Halifax tonight, already told them the situation as is so they're inquiring with the underwriters. (we both have separate AIPs with them now). Hopefully that wasn't a bad idea.

The_J

Yes, it would have to be on his income alone, without knowing the specifics I am just chucking stuff out there. Being a chauvinist I assumed the man was earning all the money

Did you tell Halifax the whole situation? I.e splitting up etc. Not saying that's a bad thing, Halifax are a very good lender.