Buying in 1 persons name due to poor credit score

happybunny86

Evening,

So I have enough money for a deposit on a house but a terrible credit rating so I can't get a mortgage. Partner has no deposit but brilliant credit rating so we'd like to buy together in his name.

I totally trust that I'd we broke up he'd give me the deposit back. However I ended up in a lot of debt due to my previous partner. So in the spirit of learning from our mistakes is there any way I can not be on the mortgage but we can have a private agreement that as I've put the deposit down and am paying half the mortgage that half the house is mine?

Would be nice to have that peace of mind.

AdrianC

No lender will have you down as part-owner if you're not on the mortgage - if ever they need to repossess, they'd not be able to, because they'd only have rights over half of the property.

So you'd need to put some kind of agreement together with your partner, through your solicitor probably, to make a binding agreement regarding any equity. A deed of trust would be the usual way.

Running_Horse

Wouldn't the lender want some idea of where he suddenly obtained a deposit?

goodwithsaving

"I totally trust that I'd we broke up he'd give me the deposit back" - this is a bit naiive. If you buy together, you can be tenants in common and specify that the deposit is returned to you in the event of a split. However, I can't see there being such a way with you not on the deed. Also, if you had saved the deposit wouldn't you want to be on the deed of your jointly owned house out of pride?

HappyMJ

Running_Horse wrote: »

Wouldn't the lender want some idea of where he suddenly obtained a deposit?

If partner = married/civil partner then transfers of cash/property between them is acceptable.

Although saying that I can't see why the OP can't be on the mortgage. You can have a terrible credit rating it doesn't matter. You can go through a mortgage broker to find a mortgage. You can also have no income and in no way be able to afford it on your own. You could even have loan/credit card expenses with your zero income so it looks like you should really declare BR but won't due to the support of your partner. Many stay at home parents have zero income yet qualify for a mortgage due to their partners income.

happybunny86

Of course out of pride I would love my name to be on the deeds but I have 8 defaults on my account so I thought it very doubtful Id be able to get a mortgage until they drop off in 2 years time. We've worked out that we'll spend £11k on rent in the next 2 years so as we have a deposit we'd rather buy now in his name particularly when help to buy is still available.

I would have thought that even if you have no income if you are on a mortgage you would need to be credit checked for that mortgage. Even though I have finally paid off all my debts this month and have a very healthy salary now. The 'me' 5 years ago got herself into a mess with money was very naive and buried her head in the sand so I don't have a proven history of being able to pay creditors.

Pixie5740

Everyone applying for a mortgage would be credit checked, however your poor credit history is not necessarily a barrier to going on the mortgage. Speak with a mortgage broker.

If you're not married/civil partnership and don't want to go on the mortgage then your other option is to gift him the deposit as he won't be able to borrow a deposit which is very risky for you.

happybunny86

Putting all the advice together I'm going to look into gifting the deposit but having a solicitors agreement regarding the equity in the house. It gets the same results and fair enough my name won't be on the deeds but I will still own a share of the house so after the defaults are gone we can look at getting me put on the mortgage.

Yorkie1

Many lenders will have an issue with the deposit coming from the person who is not on the deeds but will be living there.

Speak to a broker.