Joint Mortgage Fears

JerryD_2

I am currently considering joining my partner on her mortgage, I have been living with her for a while now. If I did join her on the mortgage we would also probably be taking out a £10,000 re-mortgage to update the property. Her worry is that if (if!) we were to part then she would be left with the prospect of having no home as the mortgage lenders will have to take into account the extra £10,000 in mortgage on top of what she can afford now and may not think she can afford to keep paying it. The house was bought for £50,000, is worth £75,000 so has equity. She earns £15,500 per year and so would just fall short qualifying for the whole £50,000 + £10,000 on her own. Of course if I were on the moortgage there would be no problem but if my name was to be taken off the mortgage then things aould change as I have said. She pays £300 a month at the moment and the extra £10,000 would take that payment up to about £360 a month (which she can afford on her own, but it doesn't quite work like that I know!). Has anyone any thoughts on this? - if we were to part in the future would the mortgage lender really consider repossesing the house for just a £60 difference a month, or would they just 'see how things go' etc. regarding the repayments? Also, just out of interest is there a minimum time you have to be on a mortgage before your name can be taken off?
Thanks for any help
-Jerry

getmore4less

I don't this either of you have though this through properly.

What are you bringing to the table?

If there is £25k equity you should be injecting £12.5k for a 50:50 share and then pay 1/2 the refurb costs.

What about other exit senarioes like death.

Why is the mortgage still £50k if this was bought some time ago?

have a read through the board, it is littered with this going wrong, think it through properly and have proper equity and exit plans.

based on you limited thoughts so far thgey would not repo as they can still come after you, they will just not take you off the mortgage and you will be stuck on a mortgage on a house
you no longer want an interest in.

edit:

another thought ... is this a shared equity of some sort.

StuC75

why the strong need to join on the mortgage,..

increasing the mortgage lending affects the ltv and possible rates available.. 50/75 = 66% ltv, better rates than 60/75 = 80%..

Many unsecured loans have just as good rates now - e.g. Tesco 6% (subject ....) which for home improvements can be a longer term which may be more a month but wont be as long a term as the mortgage...

echo earlier poster, how are your buying into the equity that your partner has built up?

A fairer approach may be for you to bring £10k in for the improvements (via unsecured methods or savings); for which you could then be added into the mortgage (still at 50k) which would then be at a better ltv (as the other loan would only affect 'affordability' rather than ltv)..

ViolaLass

The bank won't repossess if they think she can't afford the mortgage on her own, they just won't let you off it.