are we being misadvised?

witchy1066

Morning all,

I have just read on another thread something that has got me worried,

I am 62 my partner is 50, (been together 25 years but not married)

we are looking to buy a property and originally it was going to be in my partners name only with myself down as a dependant but because of the way we work our finances, a joint account and all our savings in my name only,
our broker said we would be better going for a joint mortgage
I did ask the broker is that would be possible with me being 62 , (we are looking to get a 17 year mortgage, taking my partner to retirement age) and she said yes they would work it off my partners earnings
have we been misadvised?

obviously I will ring her tomorrow but would like some input from you guys and gals

our broker is an independent

Thank You

GMS

Why do you think you are being mis advised?

If you provide some or all of the deposit and you are not party to the mortgage it will cause issues as you would have rights to the property if a repossession took place.

Your age will restrict lenders.

Speak to your broker who knows your circumstances before garnering opinion from people who have no idea what you want or can have

dunstonh

have we been misadvised?

Nothing suggests you are. Some lenders wont want you but others will.

That other thread is an issue because it is not spouse/partner. It is parent/child. The parent owns the property. Not the child. There are all sorts of issues on that case. Few of which apply to you (inheritance tax could be an issue with you but the adviser recommendation would likely see that not being an issue whereas your original plan could have done).

witchy1066

Thank You both,

I appreciate that all cases are different but i have read a lot of threads on here and all seem to say lenders will take the age of the oldest applicant, when working out years for mortgage,

I do find it a bit confusing

originally we thought the easier option would have been for me not to be on the mortgage,

hadn't given the way we work our finances a second thought, still don't really understand why it would be a problem,
its the way we have done it for the last 25 years

GMS, I am not providing any of the deposit, the money in my savings account is savings from partners earnings, quite clear on bank statements where the money comes from, (I haven't worked for 10 years)

I will ring broker tomorrow and ask her to clarify for me

hope it is ok , after 3 months of looking at houses we have found one that ticks most of the boxes and was thinking of putting an offer in.

I really appreciate the help/hints/tips and confidence this forum has given me on the minefield subject of buying and selling

xxx

Goldiegirl

If the mortgage was in your partners sole name, the property would be in their sole name too.

Personally I would expect my joint home to be in our joint names, so I would be finding a lender which would take us both on in a joint mortgage.

Goldiegirl

Also, if the only income multiple that is being used to finance the mortgage is your partners income, it doesn't matter how old you are, as your income isn't being used.

I'd certainly be following the brokers suggestion to have a joint mortgage

holly_hobby

Goldiegirl wrote: »

Also, if the only income multiple that is being used to finance the mortgage is your partners income, it doesn't matter how old you are, as your income isn't being used.

I'd certainly be following the brokers suggestion to have a joint mortgage

The max mortgage term will be based on the age of the oldest applicant, regardless of whether the primary applicants income covers the mge or not - due to the fact as joint mortgagors you are both jointly and severally (singularly) liable for the mge debt, hence age dictating term IS an issue for all applicants based on the fact, that most lenders have a max redemption age ceiling of 75 yrs for all mortgagors (borrowers).

So for you to be party to the mge and be on the property deeds, you either seek a lender that does not have such an age restriction, of which there are a couple of lenders who'll consider (and where your earning partner goes primary/main applicant), or you leave yourself off the mge and instead ensure that your partner's will bequests the property to you, with life cover on them (in trust for you) at least to the tune of the mge amount (decreasing term assurance is the cheapest form of life cover, and completely adequate if a repayment mge) - to enable you (given you dont' have an income) to repay the mge on their death within the mge term.

Additionally, as you are not married I can not stress how important it is that you both have vaild wills in place, otherwise and despite being life partners for many yrs, your estates will follow the laws of intestacy and be apportioned to surviving BLOOD relatives no matter how distant or how much contact you have with them, taking no account of the surviving partner.

Of course an experienced mge adviser and financial adviser(if not qualified in both area's) will advise and guide you on both your mge requirements and estate provision.

I should also note that there are a couple of mge lenders whom will consider a mge application where not all those named on the deeds are party to the mge (eg HSBC whom do/did look at this business, and don't accept intermediary business), but of course that would be dependant upon the mge applicant meeting their criteria assessment.

Anyhoo hope this helps

Good luck

Holly x

witchy1066

Goldiegirl wrote: »

Also, if the only income multiple that is being used to finance the mortgage is your partners income, it doesn't matter how old you are, as your income isn't being used.

I'd certainly be following the brokers suggestion to have a joint mortgage

this is what we were told but now Holly has said its not so,

I don't mind which way we get our mortgage, me on it or not but it would seem either way is going to be a problem

Thank you Holly for the insight about having wills drawn up, this subject has already been covered by our children (well, my children, partner has no children of his own) and we have no issues on that part of things,

thank you for taking the time it really is appreciated

witchy1066

Thank you Holly for your concern about life insurance and having wills in place , we already have both in place and have done for many years, my partner used to be a fireman and things like that are something the brigade insist on .

I do hope our MB has got it right ,and can find us a mortgage
I am getting a bit worried now ,
she is independent , we haven't paid anything as yet but will do once her work for us is done, that was the agreement

we always knew our case would not be straight forward but didn't imagine it would be so complicated,

Senior_Paper_Monitor

There are lenders (albeit not many) who will totally ignore age of an applicant {ownership and mortgage) if self supporting and income not needed for affordabily. I say this on the basis of arranging a mortgage on this sort of basis most weeks of the year ! (A statement solely to qualify my statement NOT to tout for the business).

Sounds to me that your broker is doing fine (depending upon pension situation longer term should be possible)

Goldiegirl

When I was at the Halifax, we'd have certainly considered an application on this basis - although I don't know their current policy on this scenario.