Young mortgage owner needs help

elyssarule

I'm 22, and jointly own a house with my "boyfriend". we have only had the mortgage for 3 months and are currently tied in at a 2% discounted rate for 2 years, which we are both happy with. HOWEVER! OUr relationship maybe coming to an end and when we put the deposit down, it was 100% mine, and having only made 3 payments, to pay him back for his half of that will not take a lot.

I have just seena very nice lady from a company called Cartel (any good feedback?) and her examples of how mortgages are sold showed me how banks and loan companies make money. However, am I being really nieve?

Ultimately I need some advise on how to get the house in my own name, and the best way to have the mortgage I have now in my own name or the best option for me in my situation. Is Cartel a reputable company?

Please help of you can?!

cwoolhouse_2

Hi,

I was a Cartel manager for two years, and can only say - Avoid!

They charge extortionate fees for doing something that you can do perfectly well yourself. I assume they've talked to you about Mortgage Cost Reduction, which involves reducing the interest rate (can be done yourself), consolidating unsecured debts (can be done yourself), switching from interest only to repayment (can be done yourself), shortening the term (easier with a mortgage that will allow overpayments and can be done yourself).

My advice - Take their ideas and go see a building society or a decent IFA.

I was recently in a similar position to yourself and bought my ex-girlfriend out. My mortgage company were quite happy to take her off the mortgage (for a fee of about £250 which was simply added to the mortgage). Solicitor cost me about £400. It was easier to do this as we were tied in too.

Froggitt

May also involve stamp duty if youre changing the "name" of the owner on the deeds.

Also, presumably the three payments made so far were interest payments, rather than capital payments.......I dont see why you would give him half of that money.

You are likely to face a significant charge from the mortgage company if you remortgage before the end of the deal period.

cwoolhouse_2

Froggit - Stamp duty doesn't apply if you already own the property (i.e. your name is on the mortgage and deeds already)

Froggitt

But if it has two names and you want to change it to one of the names?

cwoolhouse_2

Yep, still doesn't apply.

That's exactly what I did a couple of months ago.

calleyw

Stamp duty will only apply when adding a name.

As hubby and I have just bought a house and my name is not on the deeds/Mortgage.

Solictor kindly pointed out. If my half was more than the threshold we would have to pay it.

But as the whole mortgage was below the threshold before they changed it. It was not going to be a problem.

Yours

Calley

MarkyMarkD

But, calley, it wouldn't be the mortgage value which was the problem, but the value of the half he gave to you when he gave it to you.

E.g. (based on old £60k stamp duty limit) - he buys for £80k, and pays stamp duty. Value rises to £130k over a few years, he gives you half share (value £65k) - you pay stamp duty on that £65k.

Why in the world didn't you want to be on the deeds when he bought it? Normal practice for a married couple to both be on the deeds surely - hardly any good reason not to.

calleyw

I could have swore hubby said mortgage and not value of the property Need to go get my ears cleaned out.

Sorry if I had mislead anyone that was not my inention (sp?)

Still makes no difference for us as half of the price of the property is still way under the current threshold for stamp duty.

Why is it strange for a married couple not to have both names on a deeds/mortgage.

The property we sold to buy this house. Was in my name only. As hubby's job was iffy and I was in good steady job. So the deeds/mortgage was in my name. Never changed it due to the cost of it.

This time around I am not working. So putting me on the mortgage would have dragged down the amount we could have borrowed. As I have read rightly or wrongly that if I had no wage then it would be done to 2.5 times his wage because it was a joint application rather than 3 times his wage as a single applicant. And 2.5 times just would have been no good.

We will once I have got another job and we are bit better settled look at putting my name both on the mortgage and and the deeds.

Yours

Calley

Milky_Mocha

MarkyMarkD wrote:

Why in the world didn't you want to be on the deeds when he bought it? Normal practice for a married couple to both be on the deeds surely - hardly any good reason not to.

It's probably more important for both names to be on the deeds when the couple are UNMARRIED. Being legally married gives more security / simplicity in terms of the law for the party whose name is not on the deeds, isn't it?

I have always believed that it is a more ideal situation for a couple's finances to not be interlinked as much as possible, if they can afford it.