Standard Mortgage Deed advice please

Moonandmoon

Hello,

Due to my financial situation (fixed term contract) and health (diagnosed with breast cancer), no mortgage company will touch be with a barge pole.

We are in the process of buying a house and my husband has had a mortgage offer accepted. As I've asked for my name to appear on the deed I've had a Standard Mortgage Deed document sent to me to sign under the Deed of Consent and Charge (it's from Santander).

It says I should seek legal advice before signing - our solicitor won't help me as there is a 'Chinese wall of silence' because it's in hubby's name. Should I really be paying for another solicitor?

I spoke to Santander and they said it's basically if he doesn't keep up repayments I can't gain squatters right and so forth and have to let the house be repossessed. I'm happy with this as we are both paying into the mortgage only 'I'm not on the paperwork'.

I am paying in cash to the purchase on top of the mortgage (yes, and the banks still wouldn't accept me, even though I'm still paying my current mortgage and have never defaulted). Also our relationship is very stable, he could have run off when I was diagnosed with cancer and he hasn't.

Are there any other legal implications I should be aware of? I could post what is actually says if that helps.

Many thanks,

M

Thrugelmir

Moonandmoon wrote: »

As I've asked for my name to appear on the deed

Can I ask why? What are you looking to achieve?

Moonandmoon

It's just because I'm putting money in as well. Force of habit like our current property.

kingstreet

It is my understanding that Santander, in common with other lenders, will not permit a party to be named owner of a property if they are not named on the mortgage.

The issues you state are a reason why your income may not be taken into account, although your health should have no impact whatsoever. Therefore I can see no reason why a joint mortgage should not be possible. Do you have other problems you have not dislosed here?

I suggest you ask the question of the conveyancer acting for your husband and Santander and come back to your thread with the answer. The question is; "Is a sole mortgage, joint purchase/ownership acceptable to the lender?"

You may wish to refer to Santander's current lending criteria;-

We will not accept a gifted deposit if:

provided by the vendor (unless an acceptable new build incentive from the builder/developer);

protected by a Deed of Trust (or similar);

the person providing it will be living in the property, but is not named on the mortgage; or

there is a beneficial/equitable ownership/interest in the property.

http://www.abbeyforintermediaries.com/library/lending/Original.pdf

See page 8.

As you will be a resident in the property and aged over 17, you will normally (ignoring the above) be required to sign a consentor to mortgage form. This prevents an implied tenancy being created should the lender wish to exercise its right to repossess in the event of default. You are advised to take independent legal advice on this issue before signing.

starsky32

If you are putting your own cash in but wont be named on the title deed then you could get a deed of trust registered by a solicitor to protect yourself if relationship did go bad etc.
The deed of trust basically goes on the title at the land registry and says that should the house be sold or relationship split then you will be entitled to the money you have been paid back.
Bit of peace of mind for you.
As previous post above you've probably been rejected on this new mortgage as you are already named on another mortgage and your salary is probably already used against this property. The mortgage company wont care you've paid the other mortgage fine all they will see is that your salary is already there to cover that mortgage and cannot be used for the new mortgage.

magpiecottage

I agree with Kingstreet. There is no reason why you should not be included in both the ownership of the property and as a mortgagor (but it must be both, not one or other).

If the lender is willing to lend solely on the basis of your husband's income alone this should not cause a problem.

Your health and employment status would certainly not affect this although a default on a debt or a criminal conviction might.

I hope your health recovers soon.