Deposit question

prawn78

Hello,

We are planning on selling our house which is in my husband's name and using the money from this for the deposit for a new property. We wanted to do this and move to a joint mortgage, however my husband just moved to a fixed term contract so Nationwide will not loan us money with his name on the mortgage. I can apply as the sole person and borrow enough for the house we want. I just don't know whether we could get the deposit from his sale over to me on the day we exchanged. Could the money be transferred to our joint account then back out again?

Hope this makes sense,
Dawn

Yorkie1

I suspect there may be difficulties as in truth the deposit is coming from someone who will not be on the mortgage.

See what the brokers on here say, but I suspect that this might be one for a broker.

Thrugelmir

prawn78 wrote: »

Hello,

We are planning on selling our house which is in my husband's name and using the money from this for the deposit for a new property. We wanted to do this and move to a joint mortgage, however my husband just moved to a fixed term contract so Nationwide will not loan us money with his name on the mortgage. I can apply as the sole person and borrow enough for the house we want. I just don't know whether we could get the deposit from his sale over to me on the day we exchanged. Could the money be transferred to our joint account then back out again?

Hope this makes sense,
Dawn

If your husband is selling the property then I don't see what the problem is. The old mortgage will be redeemed when the property is sold. The equity then can be injected into the purchase of the new property in joint names.

prawn78

Thrugelmir wrote: »

If your husband is selling the property then I don't see what the problem is. The old mortgage will be redeemed when the property is sold. The equity then can be injected into the purchase of the new property in joint names.

The problem is my husband's name won't be on the new mortgage as his employment on a fixed term contract means he can't get a mortgage now. I earn enough to get one on my own, but need the deposit which is tied in with his mortgage.

Thrugelmir

prawn78 wrote: »

The problem is my husband's name won't be on the new mortgage as his employment on a fixed term contract means he can't get a mortgage now. I earn enough to get one on my own, but need the deposit which is tied in with his mortgage.

If you can obtain the mortgage in your name alone then should be possible for your husband to be named as well. Unless the NW is concerned that your husband will be financially dependent on you if his contract isn't renewed.

The source of the deposit will be an issue. As effectively gives your husband a financial interest in the property.

prawn78

Thanks. I think we probably need to speak to a mortgage broker and go into NW in person. He has only been on the contract for 3 months and it is likely to be renewed, so wouldn't be an issue but doesn't look good on paper I guess.

ran123ran_2

A few years ago I was in a similar situation to yours. The old house was in my husbands name. The new house was going to be bought in my name as it was easier due to my husband being newly self employed. The proceeds from the sale of the old house which my husband had owned went towards the purchase of our new house which I would have owned. I don't remember any issues from either the bank/lawyers.

Yorkie1

Things are very different now than they were a few years ago.