broker advice right?

cleofish

To be honest its my credit score/record, its not the best but im working on it!

I think it would def count against us to have me on there as well, im going to be contributing to the payments (although not sure if its best to inform the bank of that?) and I trust my oh
the plan is to be added later but probably not for a couple of years when im all set back up, but I know that might have problems in itself... but will cross that when we need to.

Is the problem the interest I would have in the property by giving the deposit? As we would provide a letter that its not a loan and wont affect his affordability after by having to make any repayments. I did read as well that I can provide a letter to say I will reside there but the mortage would procedd my interest in the property... something like that? But is that going to set us up for trouble later on, when I want to be added?

kingstreet

cleofish wrote: »

So for the actual application form that we will fill in when applying for the mortage after we find and make an offer on the house, he needs to put the rent/mortgage payments we will be making and the council tax of the new property?

I thought it was based on his situation now and his outgoings/ ingoings and they could see if he then could afford a mortgage ? And now really all his bank statements will show is 1 payment to me every month going out.

No. You are confusing two issues.

If asked for the rent amount for the current property on the application, you state that.

If completing a budget planner to establish affordability for after you move, you use the projected expenses then, not your current ones.

He has to be able to afford the mortgage alone, your "input" will not be taken into account if you will not be a party to the mortgage. The lender is not interested in which account payments are made from.

GMS

cleofish wrote: »

To be honest its my credit score/record, its not the best but im working on it!

I think it would def count against us to have me on there as well, im going to be contributing to the payments (although not sure if its best to inform the bank of that?) and I trust my oh
the plan is to be added later but probably not for a couple of years when im all set back up, but I know that might have problems in itself... but will cross that when we need to.

Is the problem the interest I would have in the property by giving the deposit? As we would provide a letter that its not a loan and wont affect his affordability after by having to make any repayments. I did read as well that I can provide a letter to say I will reside there but the mortage would procedd my interest in the property... something like that? But is that going to set us up for trouble later on, when I want to be added?

Not being party to the mortgage and residing there would require you to sign an occupiers consent form waving any rights in the event of repossession. However, providing the deposit will cause further issues which means it is not as simple as signing the form.

Make sure you are clear to the lender as the conveyancer needs to confirm the source(s) of deposit to the lender. Better to get it agreed up front than cause issues at the end.

What is the problem with your credit? Have you explored options for you to be on the mortgage?

cleofish

kingstreet wrote: »

No. You are confusing two issues.

If asked for the rent amount for the current property on the application, you state that.

If completing a budget planner to establish affordability for after you move, you use the projected expenses then, not your current ones.

He has to be able to afford the mortgage alone, your "input" will not be taken into account if you will not be a party to the mortgage. The lender is not interested in which account payments are made from.

Thank you, sorry for the confusion I was asking in regards to our current property in whether he would need to state individual amounts for rent, ct, tv etc when he doesnt pay these directly and it doesnt show on his bank account statements but he just pays 1 lump sum to me, which will show.
on the actual form can he just declare the lump sum to me and just give a general description of half of household bills or something similar or would he need to fill out all the individual rent etc boxes,

He would be able to afford alone the payments for the mortgage that we are hoping to get, so either way declaring it as one lump sum to me or breaking down into each commitment would show a surplus, I just wanted to find out which is the most straightforward way as above his statements wont confirm any rent, ct just the one figure to me.

cleofish

GMS wrote: »

Not being party to the mortgage and residing there would require you to sign an occupiers consent form waving any rights in the event of repossession. However, providing the deposit will cause further issues which means it is not as simple as signing the form.

Make sure you are clear to the lender as the conveyancer needs to confirm the source(s) of deposit to the lender. Better to get it agreed up front than cause issues at the end.

What is the problem with your credit? Have you explored options for you to be on the mortgage?

Ok thanks, we have already informed the bank when we initially applied for the dip that it would be gifted by me, they didnt bring anything up then but I realise that wasnt the full application but ill make sure all are aware and will take advice.

GMS

cleofish wrote: »

Ok thanks, we have already informed the bank when we initially applied for the dip that it would be gifted by me, they didnt bring anything up then but I realise that wasnt the full application but ill make sure all are aware and will take advice.

At the point of stating the deposit was to be gifted by you did you say you were to reside in the property?

Which lender are you applying to?

cleofish

We applied through halifax, we did tell them at the time that I was a partner and would be living with oh and they asked about the deposit later on and we explained it would be from myself, they did ask if it needed to be paid back, but explained it would be gifted with no requirement to pay back.

Oh also asked to apply for the mortgage just in his name.

kingstreet

cleofish wrote: »

Thank you, sorry for the confusion I was asking in regards to our current property in whether he would need to state individual amounts for rent, ct, tv etc when he doesnt pay these directly and it doesnt show on his bank account statements but he just pays 1 lump sum to me, which will show.
on the actual form can he just declare the lump sum to me and just give a general description of half of household bills or something similar or would he need to fill out all the individual rent etc boxes

You do not give a breakdown of expenditure for your current property. The only thing which may be requested is the amount of rent payable. So how your current bills are paid, by whom and from what account is not relevant, nor will it be requested.

He would be able to afford alone the payments for the mortgage that we are hoping to get, so either way declaring it as one lump sum to me or breaking down into each commitment would show a surplus, I just wanted to find out which is the most straightforward way as above his statements wont confirm any rent, ct just the one figure to me.

Unless he is asked to provide evidence of rent payments, how the rent is paid is not relevant. Again, the lender is not going to care which account it is paid from. If necessary, the lender will request a landlord's reference to obtain the required evidence.

cleofish

Ok thanks for clearing that up and for taking your time to reply.

Onto to finding a house we like and put the application in! Then its nail biting stage! I suppose thats the only way to find out!

Dave_Ham

Late to the party, although huge word of caution on the deposit front.

You will get a mortgage offer and the advisor in branch will be happy.

The Solicitor will check the source of deposit and see your occupancy form and tell the lender. The lender would then be highly likely to withdraw your mortgage offer and you will be down the valuation and legal costs.

Granted you had a bad experience, but this is why a decent broker can be very important.

Good luck