Getting into bed with my uncle

marking_bad

Not literally of course, that would be hideous. In mortgage terms...

Basically I would want to borrow more money than I could as a single applicant by using my uncle as a joint applicant. I would want the property fully in my name, and I would pay my uncle each month to pay his side of the mortgage. My uncle wouldn't be living in the property.

Is this something that is possible/exists?

greenface

Now then ,,Now then ,,.. There is a reason why banks /Bs & lenders draw info up re; wages earnings savings v borrowing . If it goes t1ts up who do you let down first. If i was you i wouldnt . If i was your uncle i wouldnt either . But give us some figures to see what you want to do.

marking_bad

Im not looking to get into financial difficulties by taking on more than I can afford, I just believe I can pay back more than the 4x income mortgage amount. I manage almost double the amount of mortgage payment at the moment in rent. But apparently they don't lend more than 4x income. And the type of houses I'm looking at, a 20k supplement loan would be a big difference.

Kynthia

Usually everyone on the mortgage would be an owner on the property deeds. However you could use a broker to find a lender that would be happy with this or see if you can get some kind of guarantor mortgage. Or have a trust deed that shows your uncle only owns 1% or whatever a solicitor suggests.

mrginge

Ask yourself this question. What kind of an idiot would agree to be liable for a mortgage but not actually own any part of the property?

marking_bad

That's not really the most important thing, I assume it wouldn't be too difficult to hand over full ownership to me, albeit at a cost I also assume.

ognum

marking_bad wrote: »

That's not really the most important thing, I assume it wouldn't be too difficult to hand over full ownership to me, albeit at a cost I also assume.

While your uncle remains on the mortgage he must remain an owner of the property.

If your Uncle has another home, his primary residence, when you come to sell the property he will be liable for capital gains tax on his share of the profit of the house.

OP you really need to look into this carefully, does your Uncle have another mortgage, if so he may not be able to get another residential mortgage.

Get professional advice!

hj2

My uncle helped me get on the property ladder a while back (2003), he went on the mortgage and as soon as I paid him back his name came off for a fee). We both had solicitors and did it properly so no one could get hurt and I still really appreciate what he did. I think you need to ask why you don't want his name on the deeds though.

marking_bad

What happens if one of us dies, or fails to meet the mortgage payments? Does it get complicated?

J_i_m

Does it get complicated?

I think it is already complicated.

I think you're looking for loopholes to get pack due diligence checks.. and that's all very well. But if something happens... like you lose your job, your earning potential is substantially harmed in some way then you'll have to fall back through those same loopholes and you may well land in the s***.

marking_bad

If I lose my job, I will have problems no matter what mortgage I get, remember my uncle is doing me a favour rather than looking for an actual investment.