Mortgage application while on probation

Warden8632

Hi my son is in his existing house, but needs to remortgage to remove his partner off the property. The house is worth 150k and the mortgage left on property is 120k.
He can only borrow 114k on his wages, so thought he would bring his sister in on the mortgage to make up the difference.
The problem is that she is 2 months into her probation period which I have heard might be a problem.
Any ideas?

He needs to sort this before the probation period ends!

Cheers

Warden8632

betmunch

Cant see a problem here a half decent broker couldnt fix.

A bigger issue is making sure they futureproof their plan

Good luck

Warden8632

Hi Betmunch

He is off to see Natwest on Thursday good plan or not?

betmunch

Never a good plan to see a bank in my opinion, but then I am biased arnt I?


Just remember that whatever the bank tells him is based on their criteria only and not representative of all banks.

g40lew

When we went and saw somebody at Natwest just before Christmas my wife was 2 months into her probation and they told us she would need to have completed her probation.

Belfast1978

Hello,

I was on probation for my application and that wasn't a issue but I had left a job on the Friday to go to my current job on the Monday in the same industry so that might have something to do with it.

kingstreet

It varies from lender to lender.

Speak to a broker, or ring each lender and ask its policy on probationary employment.

Warden8632

Thanks for the replies, will get to it

pathtofreedom

They need to figure out now exactly how this deal will work. If the sister or he gets married and wants kids and the house ends up in negative equity what will they do? Is there a doc written to say how much equity - if there is any - the sister will gain if she tries to force a sale in 5 years time to buy her own place? What if one of them dies what is the plan then? Is she ok about being liable for capital gains too, or it impacting any benefits she might need, or is she going to live there as well?

Things like this rip families apart if you're not very careful, so all of this needs a lot of thought and help of a solicitor before rushing into it.