my brother wants to take over mortgage

DigForVictory

+1 for get formal advice.

I love my family but even with the risk of reposession wheezing down my neck, I've spent years getting independent of them & would rather be in a shoebox with husband & children than financially an infant again.
But that is me. Hence, get advice!

davidmcn

ethank wrote: »

This will not work. You can have more borrowers than owners, but not more owners than borrowers.

You could not remain on the deeds if you are not lending on the property. It will prevent the lender from repossessing the house.

Actually you can grant a security over property in support of your co-owner's debts if you really wanted to, but in general lenders expect the owners and borrowers to be identical.

Annie1960

I suspect you are talking about a 'tenants in common' joint ownership.

As others have said, this seems an extreme way to go. Taking in a lodger would be much easier until such time as you get another job.

If you insist on going ahead and letting your brother buy a percentage of your property, than your first stop should be a mortgage adviser who can let you know if this is viable or not.

comengtract

LandyAndy wrote: »

Has your brother considered the effect on his credit rating of becoming financially associated with you?

Yes he has!

RAS

Have you applied for Mortgage Interest Allowance as you should be entitled to this after 3 months on JSA?

comengtract

Annisele wrote: »

I think the opposite - a joint mortgage might work, but a mortgage in your brother's sole name is definitely not appropriate.

Your brother can't take out a mortgage secured on half a house. Any mortgage needs to be secured on the whole house, and all owners need to be party to the mortgage. So, you and your brother might potentially be able to take out a joint mortgage secured on the entire property. From the lender's point of view, both of you would be liable for the mortgage payments - but that doesn't stop you reaching an agreement with your brother about payments, if that's what you want to do.

Whether your brother would qualify for a mortgage at the full market value is irrelevant in my view, because you don't want to borrow the full market value. The important thing is whether the two of you can jointly get a mortgage for the amount you want to borrow.

thanks, interesting thought that may have some traction!:)

comengtract

davidmcn wrote: »

Actually you can grant a security over property in support of your co-owner's debts if you really wanted to, but in general lenders expect the owners and borrowers to be identical.

how does this work?

comengtract

princeofpounds wrote: »

shurity = surety.

Go to a mortgage broker, this is the sort of thing they are there for.

I think you are both a little confused as to what you are looking for anyway with regards to the house ownership structure. That might benefit from a chat with a lawyer.

we have seen brokers and are waiting for them to get in touch, but, im thinking that every thought counts!!

comengtract

Annie1960 wrote: »

I suspect you are talking about a 'tenants in common' joint ownership.

As others have said, this seems an extreme way to go. Taking in a lodger would be much easier until such time as you get another job.

If you insist on going ahead and letting your brother buy a percentage of your property, than your first stop should be a mortgage adviser who can let you know if this is viable or not.

getting in a lodger will have a very negative impact on my benefits and is also classified as unearnt income etc.

RAS

if you provide meals, then the impact on inccome based benefits is less but would no way pay for your mortgage.

Have you applied for mortgage interest allowance?