Joint Mortgage, single name on deeds?

pauld43

Quick question: Is it possible to arrange a joint mortgage with only single name on deeds? Situation is I have moved in to my partners house (her name on deeds) and we would like to re-mortgage to firstly clear some of my debts and secondly to improve the house. We would be looking for 75% LTV and from a salary perspective we would have no issues using the current set multiples. I have no desire to be on the deeds so it's no issue to me!

kingstreet

One or two lenders will allow more borrowers on the mortgage than there are owners. However, are you sure you wish to take this risk? You would be committing yourself to the repayment of the whole mortgage, for the whole term with nothing, no share of the equity, to compensate you for this risk.

This could rebound on you with significant financial implications.

pauld43

Thanks for the reply Kingstreet, yes am aware of the implications and happy to live with it :-)
Just needed to check whether this was acceptable to lenders.

holly_hobby

As Kings states, there are a select no of lenders that would be prepared to consider this - but I reiterate what Kings has stated, in becoming party to the mge, you become jointly and severally (singularly) liable for the repayment of the mge - and if you are not party to the deeds, you have all the risk (inc pursuarnce for upto 12 yrs for a mge shortfall realised on disposal), but for none of the benefit.

You also need to consider that should you wish to be removed from the mge liability (say following a relationship breakdown), this will be wholly dependant upon the lender be happy that your (ex)partner is able to service the loan on the sole income - if they can't (and remortgage isn't an option), you will be remain on the mge until an alternative arrangement can be stuck, or the property sold - despite that fact that you will have no legal benefit of the property !

So you can see why entering the mge for no equity share, may be seen as madness, but if you are happy with this arrangement (now in possession of the above facts), then it is of course your choice and decision.

Of course speak to a broker to source some suitable providers, but I believe HSBC (whom don't accept intermediary business, so may not be mentioned by your broker) may consider this type of arrangement.

Think it over v carefully before you jump in to this .....

Hope this helps

Holly x

kingstreet

I only know of HSBC and Barclays who will do this.

pauld43

Holly, thanks!
Perhaps i'm being a bit of an old romantic and the easiest thing would be to put my name on the deeds.
The question really came up due to my partners son, she has always said she wanted to leave him the house as inheritence and i personally have no issues with that. We will be securing our wills to ensure ultmately this happens. If she dies first the house comes to me and when i die it transfers to her son. I have children myself and i just wanted to ensure that her house does not become part of my estate upon my death, if I outlast her!! (doubtful!!) Is that possible? Crikey, what a cheerful thread i've started!
Paul :-)

kingstreet

pauld43 wrote: »

If she dies first the house comes to me and when i die it transfers to her son. I have children myself and i just wanted to ensure that her house does not become part of my estate upon my death

You need an estate plan, a combination of wills and trusts to do this correctly. A will alone would not be sufficient.

This is the outfit I introduce to;-

http://www.stepinheritance.co.uk/protect.php

with information on how the plan works.

pauld43

Really grateful for the info!
Thanks
Paul

holly_hobby

pauld43 wrote: »

Holly, thanks!
Perhaps i'm being a bit of an old romantic and the easiest thing would be to put my name on the deeds.
The question really came up due to my partners son, she has always said she wanted to leave him the house as inheritence and i personally have no issues with that. We will be securing our wills to ensure ultmately this happens. If she dies first the house comes to me and when i die it transfers to her son. I have children myself and i just wanted to ensure that her house does not become part of my estate upon my death, if I outlast her!! (doubtful!!) Is that possible? Crikey, what a cheerful thread i've started!
Paul :-)

Thats the benefit of a Will (and keeping it updated !) esp where couples are not married - as you can dictate exactly the division of your estate (and hoped carers for minors), and what goes where and to whom. (or not as the case may be !).

I completely understand your feelings, none of us enter into relationships (or marriage) thinking it will fail - but the prudent make contingency plans just in case it does ... I just don't want you to be exposed without any benefit or security, especially when you have children from a prev relationship to consider too.

I would also advise life cover at least in respect of the mge debt (joint or under trust if 2 single policies are effected) - more in the form of a level term assurance policy, if there is a dependant child in the mix too - your financial or mge adviser will be able to arrange straight life cover provision.

Hope this helps

Holly