Mortgage under one spouse's name only?

upstaged

Very helpful, thanks Holly! Lots to consider there but it looks like it's still a possibility for us. We will look into life cover options, that's a very good point. I'm sure in the event of my husband's death my parents would step in to help if necessary, but it would be better to have this possibility covered in advance. The last thing anybody would want in that situation would be the risk of losing their home.

holly_hobby

Yes, relying on anyone else ie your parents to pch the house if you couldn't afford/are able, to source your own mge to repay the lender on hubbys passing, is fraut with many issues.

So, if you do manage to secure a mge in hubbys sole name, and you want to gte that you will retain the property post his earlier death, you must ensure that you effect life cover on him. Even if this means cutting back on an extra take away or 2 over the month .... as to proceed without this (esp given your current personal financial circs), would be folly in my opinin.

As I say updating your wills, and other income and family provision should also be considered as part of the planning and advice process.

Wish you well ....

Hope this helps

Holly

Dave_Ham

On an aside, you need to be really careful that the lender will accept a gift letter from a non-blood relative.

Some can be a little funny about this and some (not all) may get involved as to why you are not on the mortgage.

Just check your broker knows which ones are which and as you have been, continue to be transparent.

All the best

holly_hobby

Thats a good point Dave., however I would hope that it would be argued by the broker and considered by the lender, that Dad should be considered as a direct family member of the applicant, given his connection as FIL to the app, with his issue (the OP) both surviving and to be resident in the property as the applicants Spouse (although we know she won't be party to the mge itself ) - but it does give basis and credence to the lender as to why the FIL would wish to "assist" his son in law with a deposit.

It will certainly all be down to the brokers presentation of this - and their clear indication re Dad that the gift is absolutely unconditional (i.e - not in exchange for himself or the OP to any beneficial rights).

Hopefully they'll get their pitch right !

H x

upstaged

Just wanted to thank you all again for the advice posted here. Armed with this information we met with a broker and presented the case. We've just heard back from him and we have two lenders with reasonable rates who are happy with the situation. Actually they still see the money as coming from me rather than my father, but this is fine as long as I sign to say that the money for the deposit is a gift (as Holly said).

We were not confident in going ahead with this until posting here and finding out your thoughts. So a really big thank you! Next stop, agreement in principle and finding a house!

holly_hobby

Well done you - hope it sails through !

Good luck with the house hunting too !!

H x

droiderm

Does anyone know what Halifax are like from a Gifted deposit, from a spouse, who will live in the house?

upstaged

Halifax is one of the lenders that said it would be fine for us (same situation - deposit from me, when my husband will be getting the mortgage but we'll both be living there).

droiderm

Good news, thank you. I am in a similar position, wife has an AIP with Halifax. The deposit will be coming from us both (i.e. seperate savings accounts) although it's "our" money.

We may not well go with moving in on this basis, it depends on if we can get somewhere suitable on the mortgage amount, but it's nice to have that option.