joint mortgage based on one income.

rob_hoyle

Hello,


We had an offer accepted on a house based on a single mortgage with one name on the mortgage and deeds and me providing 50% of the value of the property via a loan. We were set to do a deed of trust but our solicitor has brought up the fact I will have to sign a gifted deposit letter which complicates things.


My friend/housemate was cleared for £78k mortgage on a single mortgage, he needs to borrow £54k.
If we went back to the advisor and asked to have a joint mortgage so I am legally owning the property as well as him but based the mortgage on just his income (my self employment record is less than 2 years) Would we likely be accepted?


After he was accepted for the 78k mortgage we tried to do a joint mortgage with another company who offer better rates, but they took into account I would have to pay the loan back for my 50% no interest loan. Which I said would be paid back at £200 per month, although that's not set in stone. They said the available amount to borrow plummeted to 22k. Is it likely to be the case for any lender? I could on paper put down that I would pay back my loan from my dad at a much lower amount if it helped.
I can afford to pay back far more though and he can easily pay the mortgage repayments, it all still works out cheaper than renting currently with all outgoings taken into account.


Appreciate any advice.

Fed

First you should make sure you're on the deeds

If you go back to the lender and apply for a joint mortgage then they're going to assess your finances, so having a large loan from your Dad is going to count against you. Is he willing to sign a gifted deposit letter to you so they won't consider it a loan?

If the lender is happy with the large gifted deposit then 54k should be achievable.

I'd speak to a broker

rob_hoyle

I think he would do a gifted deposit letter but the reason we wanted it as a loan, we want to pay it back, plus tax reasons in case something happened to him and I would be hit with inheritance tax.


In my dads mind, he would lend me the money for my half and me and my housemate would be joint owners but obviously things are not that straight forward as we are finding out.


I will be seeing the mortgage advisor at the soonest opportunity.


Thanks for your response.