Help to Buy Equity Loan: Situation with Partner

DoctorSpice

Hello everyone,

This is my first post, so apologies if I'm doing anything wrong.

I am a first time buyer and will be the sole owner of a property I am buying with the assistance of the Government's Help to Buy Equity loan -The property will not be completed until summer time.

I am in a relationship and although I do not have immediate plans to live with my girlfriend, I want to know whether it would be possible to have her live with me in the future.

I understand that you are not allowed to rent out, or sublet the property. But if am living there myself, could my girlfriend be a cohabitant - Do the rules work differently in this sense?

I have spoken with the Help to Buy helpline and they said as long as she does not own any property or land in the UK (which she does not) then it's absolutely fine for her to live with me from their point of view.

However, after speaking with a number of mortgage brokers, I am receiving two very different answers; half of them say it's fine and the other half say it's not.

The last thing I want to do is anything illegal, so want to get some experienced advice.

Is it the broker being overly cautious, or is it something in the small print that the mortgage lender might stipulate, saying that I cannot have anyone else living in the property?

To clarify, I am buying this property on my own and it is not an option for her to be a joint owner with me, as she is currently here on a sponsorship.

I would appreciate any advice as I'm confused as to why I'm receiving two very different answers and which one is definitely the correct one.

Thank you.

kingstreet

As a specialist newbuild broker, member of the Orbit HTB broker panel and having done dozens of HTB Equity Loan cases since April 2013, she can be an occupant.

At the point of submitting the Property Information Form (with 2 adult occupants entered) we include in the submission email;-

"Second adult occupant is Miss XYZ the partner of the applicant. She owns no other property and is party to no other mortgage. She is not party to the mortgage nor purchase as they wish to keep their finances separate."

You must include her as an occupier on the mortgage application so she signs the necessary consent to mortgage form.

Be careful of lenders who work affordability from number of occupants, Leeds for example. They will treat her as a dependent and reduce your borrowing power.

Pixie5740

If you are planning on buying the property yourself and have no immediate plans to move your gf in why mention her at all?

Petite_Anglaise

If you are the sole purchaser I would just keep going with the purchase as you are.

There's no point complicating the purchase by involving a girlfriend that you may or not move in with.

Unless she is going to be on the mortgage and be purchasing with you, there is probably no point in bringing it up.

Unless I am completely mistaken and somebody on here puts me straight!

Kynthia

Your girlfriend doesn't currently live with you, isn't involved in the purchase in any way, and isn't going to be moving in when you do? So stop mentioning her as she's nothing to do with your purchase or borrowing. There would be things to consider and people to inform otherwise but you are complicating things by trying to discuss them now when she's not moving in now or when you complete.

One day if you do decide you want her to live with you there's no rules against you having someone live with you as a member of your household. There are some rules for a lodger and even more rules for having a tenant, but neither of these are the same as having someone live with you as a member of your 'family/household'.

DoctorSpice

Thank you for the advice everyone - I appreciate it!