Relationship Split

sheagre7

Hi,


I have a joint mortgage with my partner, we bought a new build last year (01.07.16) so assume there's no equity. I put in more than he did initially with savings.


If the mortgage company agrees to let me keep it on would I just owe the deposit money back to him or also half the mortgage payments he's made too?


We also had a help to buy loan for 20%, not sure if that makes any difference?


Thanks in advance

Westminster

One of the things this will depend on is whether you will be accepted by your current lender (or any other lender) based on your income and affordability.

Have you tried putting your incomings and outgoings in the mortgage calculator of your current lender (take a look on their website) and does it come out with at least as much as your current mortgage?

I would then expect your partner to require at least the deposit he put along with a pro-rata split of any increase in value of your combined share of the property (after the HTB is deducted).

I have no idea what the implications on the HTB will be though as I never used it. I'm sure one of the brokers will come along at some point to give a more authoritative answer.

sheagre7

Thank you for the response

They don't seem to have a calculator online unless I'm missing something, it's with precise mortgages and the rate is pretty high and fixed for 2 years.

What would happen if the value decreased not increased?

sheagre7

Just a thought if the mortgage company decided they didn't think I could afford it, even though I think I could would a guarantor be able to stand for me?

Thrugelmir

Why did you choose Precise for your mortgage provider?

In answer to your question.

What happens if my partner moves out and no longer wants to be party to the equity loan agreement?
The Post Sales Help to Buy Agent will be able to arrange for a ‘Deed of Release’ which will release your partner from the obligation of having to repay the equity loan. Assuming that your first charge mortgage lender is content for this to take place and that you are able to provide evidence that you can meet your housing costs and still have a reasonable standard of living, permission should be a formality.

Just a thought if the mortgage company decided they didn't think I could afford it, even though I think I could would a guarantor be able to stand for me?

You'd need to prove affordability in your own right first. Guarantors are only in place to provide surety against default. Meeting the lenders criteria is essential. As it is they who are accountable to the regulators.

sheagre7

It wasn't a choice unfortunately, we both had bad credit scores but they have improved. Thank you for the info