First time Buyers Advice needed

RJeff

Hi all,
I went to see a mortgage advisor on the weekend with my partner. We are first time buyers. We were advised that my partner had a high enough deposit and salary for us to get a decent valued property just based on his financials alone, but that I could still be on the mortgage as well. I would like to know therefore what would be the benefit of me still being on the mortgage, I would just being paying bills then surely? Is there much point me being on it if its based on his financials alone? If we were to split up, would there be any benefit for me?


Is there any difference between this and me not being on the mortgage at all, and simply just paying bills towards the house?


Further, if we were to get a joint mortgage instead based on both our financials, his deposit is triple the amount of mine so his share in the property is obviously going to be larger than mine? How would shares work if we were to split up? Would this just complicate things when we can afford a property based on 1 persons mortgage?


I hope to receive some genuine advice on this matter as I am simply an innocent first time buyers with lots of questions before making such a big financial commitment. Look forward to hearing from you.

juniordoc

Would you plan to both contribute to the monthly mortgage repayments? And would you plan to do this uneven shares or in an uneven split?
If you want to put in seperate amounts into the deposits then have a look at owning as "tenants in common" and getting a deed of trust.

kingstreet

If you aren't party to the mortgage will you be happy to not be party to the ownership of the property.

It's neither, or both!

RJeff

I guess if my partner pays for the mortgage, I'd pay for the bills then. So maybe our monthly payments would equal out between the 2 of us?


So if I was on the mortgage paying bills, but the mortgage is calculated just using my partners financials, would I not get any ownership of the property at the end even though I'm still on the mortgage paying bills?


Seems like there is no benefit for me to be on the mortgage unless we are sharing things.
If our shares aren't equal because my partner has the higher deposit, would it be better to be tenants in common, to split the shares i.e. 25%/75%?

alex_163163

Just so I understand the situation a little better, you are saying you will not be contributing anything towards the deposit, or paying any of the monthly mortgage payments? And so your partner will be the only name on the mortgage and deeds?
In that case, as long as you are ok with having no ownership rights over the house then go ahead. But if you break up and your partner decided to sell the house you will have no claim over any equity or sale proceeds as far as I am aware.
However if you are putting in any money at all, then I would suggest you apply for a joint mortgage and between you research deeds/ declarations of trust and decide between you how you want to split the ownership of the house eg percentage shares.
What does your partner think? Does he want the sole responsibility of Home ownership?

RJeff

Well the mortgage advisor said the mortgage would be in my partners name (using his financials) but I could be on the mortgage as well and I suppose I would pay towards bills, some mortgage payments etc, but mostly just bills.


If I was to put in my deposit, we would then have to seek legal advice on how to split things into shares/percentages etc. as my deposit is a fair bit lower than my partners?


My partner is so laid back, he is happy either way. He would benefit from it all either way. Its me who would be left with nothing lol.

RJeff

So really if the mortgage is going to be calculated using my partners financials, with me just paying bills, then there would be no benefit to me whilst paying off the mortgage because if we break up, all ownership would go to my partner anyways?
But I am going to pay towards the mortgage whether that's deposit or monthly payments then a shared/joint mortgage would be better? perhaps with an agreement/tenants in commons or something in place which splits the shares into percentages?


There is no difference between 1) me being on the mortgage and just paying bills/mortgage financials being in my partners name AND 2) the mortgage just being in my partners name and me just paying towards bills with no connection to the mortgage? Am I correct??

kingstreet

Do you want to be an owner of the property?

if yes, you have to be party to the mortgage

if no, you should stay away from both and let your partner have the property completely to himself.

RJeff

Am I still party to a mortgage even if my name is on the mortgage but the mortgage figure is calculated using my partners deposit/salary?
I'd benefit by being on the property ladder ready for my next house if we split up though?

Neutrinno

RJeff wrote: »

Am I still party to a mortgage even if my name is on the mortgage but the mortgage figure is calculated using my partners deposit/salary?
I'd benefit by being on the property ladder ready for my next house if we split up though?

Yes. If you are party to the mortgage you will jointly own the property and be 100% liable with your partner for repayments, regardless of who actually pays or who's income is used for the lenders affordability assessment.

RJeff

Neutrinno wrote: »

Yes. If you are party to the mortgage you will jointly own the property and be 100% liable with your partner for repayments, regardless of who actually pays or who's income is used for the lenders affordability assessment.

And if we were to split up, I would be able to have a share in the property, as long as it is pre-determined beforehand how much of this share I would have? is that correct?