Declaring who will live in the house?

MRSJH

I am currently buying a shared ownership property and my partner is on the housing application but due to her being self employed and not having 2 years accounts a mortgage broker suggested I try to get the mortgage alone. Today they mentioned my partner being on the housing application could cause some problems so we are asking for her name to be removed.

Now the Mortgage broker is suggesting I may not be able to get the mortgage (despite being told I could) as they see it as she is living off me (which she isn't she always pays her own way) so they are now suggesting I state there will only be one adult living in the house (ME) :eek: The Mortgage Lender has a box which clearly states how many people will be living in the property. When I select 1 I can get a much much larger amount than when I say 2. :huh:

So the Mortgage Broker is advising me to Just ignore the fact she will be living with me and get everything as myself. I find this really strange and surely this is encouraging lying?

Am I being over sensible and honest? The mortgage and rent payments together happen to be less than what we are paying in rent so it would be nice if they could look at that instead of so black and white with figures. I am concerned the mortgage broker seems to think it's totally the norm and there is nothing to say she cannot then move in with me once I have the mortgage.

The thing is we already rent together, have joint accounts and are engaged so it's pretty obvious there is a connection I feel this is going to lead to a whole host of trouble and constantly hopping down different holes. Any advice would be great! I don't want to be breaking any law but wondered if anyone else had ever done or been encouraged to come up with what feels a fairy tale.

lewishardwick

I'd tread very carefully. The fact that you've completed the HA application with both names suggests a connection. Have you alluded to your relationship / engagement on the HA application?

Should you remove her name and apply for both on your own all of takes is one slip up, and the mortgage lender could drop you like a hot potato.

Even once complete, if they discover your fianc! is there and permanently living with you and you lied on your application, be prepared for a potential fraud case against you.

Saying that, my partner is not involved with the purchase of my place. All he had to do was sign that the mortgage lender had priority over the property. They didn't even ask about their income...

MRSJH

The mortgage broker says it shouldn't matter that she is living with me and that she can move in at a later date as "circumstances change". I am pretty annoyed as from day one we mentioned the situation exactly as it was and it's taken them until now to bring it up..

We never even thought when we applied for the property as I always assumed anyone could get the mortgage, My Dad has a mortgage on his own as my mum chose not to be on it for no other reason than she didn't want to be on it or tied to it and they had no trouble.

This is proving incredibly difficult. Such a nightmare!

I was Just surprised the mortgage broker seems to be acting as this is totally normal when I can see the bigger picture! It's not Just a case of pretending she doesn't exist we have years of living together and connections that come with it she will even appear on my credit check. Feeling pretty defeated right now to be honest.

Annisele

MRSJH wrote: »

Now the Mortgage broker is suggesting I may not be able to get the mortgage (despite being told I could) as they see it as she is living off me (which she isn't she always pays her own way).

I can see why a lender might be concerned about that. If she's "paying her own way" - i.e. fully contributing to your household budget - then in the lender's eyes, you might not be able to meet all your household's monthly expenses on your own. If you need her income to cover your household's expenses, then you can't afford the mortgage on your own - and so the lender won't want to lend.

If your partner lives with you but has no (provable) income, then the lender may assume that your income will be paying for both you and her. And it's more expensive to feed two people than one - so even if the lender thinks you could afford monthly bills for just yourself, it might think you can't afford to pay for your partner too.

Frankly, I think that either you've misunderstood what your broker said, or you need a new broker. You sound deeply uncomfortable about the idea of misleading your lender - and rightly so! If the lender does decide you're acting fraudulently, it probably won't try to prosecute you - but it likely will make a report to National Hunter, and in that case good luck getting a mortgage from anywhere.

Pixie5740

Find a new broker.

I don't see why your partner couldn't/shouldn't be on the mortgage application. Plenty of couples make joint applications when one partner isn't working and is, for example, a stay-at-home parent.*


*Yes I know that being a SAHP is bloody hard work but mortgage lenders don't accept cuddles and pictures made from macaroni as income.

kingstreet

Leeds Building Society?

As I've just mentioned in another thread, it works from occupants, so two occupants but only one income is going to murder your borrowing power.

They will check your bank statements and if there is any movement of monies between you, they will pick it up and question it.

If you apply as sole borrower/occupier, they will ask you to sign this;-

http://www.leedsbuildingsociety.co.uk/_resources/pdfs/intermediaries-pdfs/intermediaries-forms-pdfs/declaration-of-intent-to-be-sole-occupier.pdf

MRSJH

It is in fact Leeds. Do they all ask how many adults will be living in the property?

Like I say she is self employed but is under the 2 years accounts so they won't even look at her as a person with income.

lewishardwick Do you mind me asking who you got a mortgage with?

I am more annoyed its taking them this long to mention it and since sending a lengthy email to the Broker with regards to a "white lie" which is what he has been suggesting this whole time has suddenly changed his attitude and acting totally surprised at the fact she might be living with me and that he cannot find a lender willing to lend if we will both be in the property. Funny as yesterday he was saying how I can do it all alone and she can move in at a "later date" no problem.

I don't want to keep paying out money for it to be stopped further down the line anyway. I am also self employed (second Job) and the broker has told me not to mention this as they HATE a second Job which will be fun when they look at my bank account as it has income and payments from my self employed work. It's been suggested to try a smaller share which I will still be around £5000 short for doing that but the Broker has said he would ask if I can buy a smaller share of the property.

However he will then email and say he cannot find a lender. WHY Does this guy not look at facts and figures and do the math before suggesting ideas that are going to come back not doable. I am so defeated and crushed by all this and guess I have to face the fact I will not be buying for at least another year when my partner has her 2 year accounts!

I agree with you Pixie5740 you would think this happens many times!

What insults me more is we currently rent together and it works out more expensive to do that than have a mortgage and rent. Why can they not Just see how much you pay out now and how you live now and adjust accordingly instead of Assuming a situation because of facts and figures. The next route may possibly be declare the second Job and send in her accounts as they are and see if they can re asses?

Sorry ranting on a little this week has been a drain.

MRSJH

Do other lenders do affordability differently or will I face this problem with every lender? Ideally I would love a mortgage on my own but happy to mention she is living with me!

I am surprised the broker is not being more helpful or looking for alternatives instead he is like "Oh well let me know when you decide what you want to do!" making more calls tomorrow to find another broker / adviser Just to get some more details.

lewishardwick

My mortgage is with Accord. But as you're looking at Shared Ownership, your choices are limited...