Unemployed on mortgage?

Yvonne_Taylor

Bit of a weird one, my son and his partner want to buy a house. She is unemployed but due to a windfall can supply a 50% ish deposit. he is struggling to find anyone to give them a mortgage with her name on it as she can't contribute to the monthly payments. I haven't had much faith in IMA myself so loathe to suggest they pay one to (potentially) do nothing. Any advice for them please?

Thrugelmir

Sounds as if affordability is the issue. As not just a question of paying the mortgage. Find a job of some kind to generate an income and become self supporting in the very obvious solution.

haras_nosirrah

non standard scenarios are exactly what brokers are for. Most don't charge just for a chat and this may reveal whether it is in fact doable to do what they want to do. There are thousands of brokers in the uk - a bad experience with one doesn't mean you shouldn't talk to different one (am guessing you had an issue with one as you say you don't have faith in brokers). It sounds as though they need a broker.

Yvonne_Taylor

Thanks for replies, he can afford enough to buy a house with her deposit on his own income, and saying 'get a job' is really not helpful, she can't, she has been trying for a long time. But I will ask around locally for an IMA.

IAmWales

Invite her to post on the Employment board, we can help her with her job search. Does she have a disability? If so there are specialist organisations that can help her too.

Boredatwrork

Yvonne_Taylor wrote: »

Thanks for replies, he can afford enough to buy a house with her deposit on his own income, and saying 'get a job' is really not helpful, she can't, she has been trying for a long time. But I will ask around locally for an IMA.

Put the money in his account, get the mortgage in his name, than add her later.

haras_nosirrah

most lenders won't allow someone to gift money and then live in the house as it creates complications if they are repossessed. putting it in his account would be picked up by money laundering checks as solicitor needs to determine source of deposit.

is it affordable to have her on the application but as not earning?

Using her money for the deposit but her not actually owning the house is a massive risk for her - I would not be happy to do this if I were her and it may be better to wait until she is employed and can go on the mortgage if it is not possible while she is not earning.

Beetroot24

Boredatwrork wrote: »

Put the money in his account, get the mortgage in his name, than add her later.

You can't just add someone later. It would require a new mortgage application in both of their names, transfer of equity/title, land registry fees, legal fees, possibly ERCs, etc. assuming the mortgage company will allow her on the mortgage later.


If she can't get a job, one thing they could do is get married. If they are going to commit to a mortgage together, that is probably more legally binding and harder to get out of than a marriage anyway.


Not trying to be flippant suggesting that. I was in this position when we bought our house. I paid half of the deposit, but couldn't go on the mortgage as I was at uni and not earning. The mortgage advisor at Halifax was aware that I would be gifting £10k and living there (I was the only one living there actually, as my now-husband was in the Armed Forces and was based 200 miles away), it didn't seem to be an issue to them, for whatever reason.


I don't believe affordability was the issue, because I went on the deeds/mortgage when they brought out the MMR, my husband wasn't earning much more, I still wasn't earning, the mortgage was barely smaller and we'd had another child. I'm still unemployed now, and we've just remortgaged with Nationwide, borrowing more for an extension, with no issues. The only real difference was, we were married.


It paid off for me, but would I do it again, or advise someone else to do the same?? No, I definitely would not.