FTB questions: sole vs joint

rfyapbtl

My partner and I are FTB noobs in Hertfordshire with the following questions. We're together 10 years but are unmarried (MM). We're looking at semis, terraced or large flats around St Albans, up to ~300k using HTB EL. Our approximate financials are in this link: http:// i.imgur [DOT] com/Bs8PiFJ.jpg

1. As I am contributing all of our deposit (£50k) can we adjust the equity in such a way that protects my money?
2. My partner's salary is half of mine, he's never had a credit card, has missed a phone bill and gone into unauthorised overdraft more than a few times. Should I be worried about linking our credit files and would my deposit+salary be sufficient for a sole application?
3. What are the benefits of speaking to a mortgage broker? Who lists reputable ones?
4. How much of my savings should I sink into a deposit? I'm inclined to keep 10k for options and contingency.
5. Are there any benefits to having your current account and mortgage in the same place e.g. to Nationwide? I'm about to switch current account so I'm open to suggestions!
6. I read somewhere that the repayment value of a HTB EL depends on the value of your home 5 years hence... is this true? Is there any useful rule of thumb for deciding whether an EL represents good value for money or not?

Thanks

ethank

Hi

We were in the same boat as you when we bought in late 2013. We're MM together 12 years and I decided that we've always saved together so we just split everything 50/50/

1. You can ask your solicitor to register you purchase as tenants in common with unequal shares in the property.

2. Probably not, but once it is done, it cannot be undone.

3. Are you buying a new build - as EL is only available when buying a new build. Generally most sites will have their own mortgage broker that they will use to qualify you, and provide you with the details of the best deals.

4. It would be good to keep a small cushion but I would be trying to get as much equity as I could. So put as much into deposit as possible.

5. If you are looking at Nationwide, the Flexclusives mortgage offer could give you a marginal rate.

6. If you do buy a newbuild on EL - then the government will take a 20% equity stake which sits as a charge at the Land Registry, you will not be able to sell it until this is cleared (it can be cleared at the same time as any sale) - If you sell at any time in the future and the property is worth less than you paid for it, then that 20% you have to pay back will be lower, if you sell at a large profit in the future, the government will want 20% of the value of the property back.

I notice your calculation is done over 30 years. Based on your ratios - it is unlikely you would be allowed to do it over more than 25 years. You have to demonstrate financial issues to get over 25 years - your calculator does not demonstrate this.

Best of luck!

rfyapbtl

ethank wrote: »

5. If you are looking at Nationwide, the Flexclusives mortgage offer could give you a marginal rate.

Should I be worried about switching accounts a few months prior to a mortgage app?Atm our deposit is hanging around current accounts... is that sufficient to demonstrate a history of saving?

ethank wrote: »

6. If you do buy a newbuild on EL - then the government will take a 20% equity stake which sits as a charge at the Land Registry, you will not be able to sell it until this is cleared (it can be cleared at the same time as any sale) - If you sell at any time in the future and the property is worth less than you paid for it, then that 20% you have to pay back will be lower, if you sell at a large profit in the future, the government will want 20% of the value of the property back.

Well explained, thank you.

ethank wrote: »

I notice your calculation is done over 30 years. Based on your ratios - it is unlikely you would be allowed to do it over more than 25 years. You have to demonstrate financial issues to get over 25 years - your calculator does not demonstrate this.

I wasn't aware of this. As neither of us will be pensionable until 65 I just assumed we could go with 29/30.

Thank you for the helpful reply!

ethank

Hi. it's fine for your savings to be in your current account.

Wish you both all the best