Mortgage Application and Tax Credits ?

RylansMummy

Hi everyone would be very grateful for any advice you can give me ...

Me and my boyfriend (see earlier posts of more of a background to our circumstances) have finally saved enough seperately to apply for a mortgage and buy a house to move in together. My parents have told me to get a mortgage agreement in principle even though we have not found a house we want yet.

My question is how would hmrc view this ? Would they class us living together after applying for a mortgage in principle as they would credit search us both etc or would they class us as living together after we found a house, made an offer, got it accepted and completed the sale?

Thank you all

(posting here as didn't get much luck on benefits board)

ACG

Why would you get an agreement in principle if you havnt found anywhere?

It may end up expiring in which case you then have to get another agreement in principle which is then another search on your credit reports.

As for the benefits, i dont know the answer but if your not actually living together - im not sure how an agreement in principle would alter anything.

notanewuser

Personally, regardless of circumstances there is NO WAY I'd be buying a house to move in together. You don't know that it will work, and buying may prove a costly mistake if you split up further down the line.

Can't you rent somewhere for 6/12 months first?

RylansMummy

I wasn't too keen on getting a mortgage in principle for that very reason as wouldnt want extra credit searches! So thank you for tha

I know what you mean we arent living together and logic says we would be classed as living together once we had completed the sale and got the mortgage (literally that very day as we would have the property to move into even if we didnt for a
week or so) but because applying for a mortgage financially links you even at different addresses I was unsure how they may view this

notanewuser

Never mind how HMRC would view it. Are you sure you want to buy a house with somebody you've never lived with?

RylansMummy

notanewuser wrote: »

Personally, regardless of circumstances there is NO WAY I'd be buying a house to move in together. You don't know that it will work, and buying may prove a costly mistake if you split up further down the line.

Can't you rent somewhere for 6/12 months first?

I have never wanted to rent and I know we are ready to be honest. We will be having a trust deed in place. Plus Im going mad living with my parents lol

RylansMummy

notanewuser wrote: »

Never mind how HMRC would view it. Are you sure you want to buy a house with somebody you've never lived with?

Quite sure

notanewuser

RylansMummy wrote: »

I have never wanted to rent and I know we are ready to be honest. We will be haing a trust deed in place. Plus Im going mad living with my parents lol

I think you're missing the point.

Lets say you buy a house in 3 months time. You move in, everything's wonderful, life's a dream. Then something happens and you split up. Do you know how messy that is? You have a child, you need to think about these things. Could you afford the mortgage on your own? What if he moves out and wants to buy with somebody else? If the bank doesn't think you can afford the mortgage alone you'll have to sell. What if that takes years? What if you lose £10/20k on it? Not to mention legal fees. Where will you live if you have to sell?

Not renting together for 6/12 months could turn out to be the costliest mistake you'll ever make.

carrot_cake

FWIW, myself & my husband bought a flat as our very first home together. Twenty four years, 3 children and 2 houses later, we are still together.

notanewuser

carrot_cake wrote: »

FWIW, myself & my husband bought a flat as our very first home together. Twenty four years, 3 children and 2 houses later, we are still together.

That's great, and I wish the same for the OP, but its not guaranteed!

RylansMummy

notanewuser wrote: »

I think you're missing the point.

Lets say you buy a house in 3 months time. You move in, everything's wonderful, life's a dream. Then something happens and you split up. Do you know how messy that is? You have a child, you need to think about these things. Could you afford the mortgage on your own? What if he moves out and wants to buy with somebody else? If the bank doesn't think you can afford the mortgage alone you'll have to sell. What if that takes years? What if you lose £10/20k on it? Not to mention legal fees. Where will you live if you have to sell?

Not renting together for 6/12 months could turn out to be the costliest mistake you'll ever make.

I am very grateful for your comments and I can fully understand where you are coming from however I can say we are ready. Its hard to explain things over a nameless faceless forum but we just work together. I could afford the mortgage on my own if worst case happened due to deposit size. My parents are well of and would never see me or their grandson struggle.

...but i do understand where you are coming from x