No financial interest document requested

Smeredith79

Hi

My partner and i are purchasing a new house. The house we are selling is his and the mortgage will be ported to the new property staying in his name only.

The mortgage company have apparently asked that i sign a 'no financial interest document' Im a bit confused as to why i would need to do this.

As i will be paying into the mortgage this is a bonus as there is a lower risk of not meeting the payments. Also i will be paying into the maintenance and renovation of the property so will have a financial interest.

He has put the equity from the current house into this new one so i understand that this may need protecting, just in case i turn out to be a money grabber. But i would have no interest in this as it was and always will be his.

If worst case scenario we were to separate i would want a percentage of the equity built up after we purchased the house not the initial investment.

Basically can anyone tell me why a mortgage company would ask for this paperwork and if this is common practice as i have never heard of this before.

Thanks Sandy

kingstreet

Anyone residing in the property from completion and not party to the mortgage nor ownership would be required to sign a consent to mortgage form similar to what you are describing.

Many lenders will allow a port to a new joint mortgage from a single existing mortgage so you may well have been able to apply jointly.

libf

Smeredith79 wrote: »

Hi

My partner and i are purchasing a new house. The house we are selling is his and the mortgage will be ported to the new property staying in his name only.

The mortgage company have apparently asked that i sign a 'no financial interest document' Im a bit confused as to why i would need to do this.

As i will be paying into the mortgage this is a bonus as there is a lower risk of not meeting the payments. Also i will be paying into the maintenance and renovation of the property so will have a financial interest.

He has put the equity from the current house into this new one so i understand that this may need protecting, just in case i turn out to be a money grabber. But i would have no interest in this as it was and always will be his.

If worst case scenario we were to separate i would want a percentage of the equity built up after we purchased the house not the initial investment.

Basically can anyone tell me why a mortgage company would ask for this paperwork and if this is common practice as i have never heard of this before.

Thanks Sandy

I had to sign one when my parents house was still my main residence but I was over 18 and they re-mortgaged.

lee111s

My girlfriend had to sign one when I remortgage as she now lives here but isn't on the deeds or the mortgage.




It's basically a document to say that if the worst happens, you won't try and claim any money from the house before the mortgage lender gets their share.