Mortgage confusion

ACG

Wobblydeb wrote: »

Would it be worth simply holding as tenants in common? http://www.thisismoney.co.uk/money/news/article-1594984/Tenants-common.html

You still have to get the Mortgage and the lender to agree to having a married couple with one party contributing the deposit (or part of) and living in the property but not going on the Mortgage because of bad credit - those options are few and far between.

enthusiasticsaver

Are you on a second marriage and your OH is not your kids dad?

Is it possible to perhaps purchase a house as tenants in common where you and OH own half each and he gets a mortgage for his half and you use your parents gift as yours?

Richard_Pia

ACG is right in saying that there are fewer options for married couples where only one party on the mortgage, but as you are not married yet this won't be a problem

Some lenders might not allow a non-owner occupier to contribute towards the deposit, but if your parents are wholly providing the deposit, again, this won't be a problem.

I think ultimately it will come down to affordability. The loan in your partner's name will have an impact on affordability so it's just a case of running the figures past some lenders.

ACG

I just went and read back through every post, I must have skimmed past the married bit first time reading.

Some lenders will still have issues with the parents of someone not owning the property gifting the deposit, have a charge over the property, with the condition their kid (who is not on the mortgage) to live in the property with the reason behind it all being bad credit - that gifted deposit letter with plenty of strings attached is not going to look great.

I know there are lenders who would look to do it, but that does not mean it should be done that way. My theory is to do something the right way - in my mind that would be a joint mortgage.

If the relationship breaks down and the OH refuses to sell, how does our OP ever get their money back?

Thrugelmir

emsywoo123 wrote: »

[*]Parents gifting £220K (approx)
[/LIST]

This is a sizable amount of money. What's the source?

emsywoo123

enthusiasticsaver wrote: »

Are you on a second marriage and your OH is not your kids dad?

Is it possible to perhaps purchase a house as tenants in common where you and OH own half each and he gets a mortgage for his half and you use your parents gift as yours?

Oooh I feel like you might be a bit psychic Yes to the first. And I will investigate the second.

emsywoo123

ACG wrote: »

.

Some lenders will still have issues with the parents of someone not owning the property gifting the deposit, have a charge over the property, with the condition their kid (who is not on the mortgage) to live in the property with the reason behind it all being bad credit - that gifted deposit letter with plenty of strings attached is not going to look great.

?

Crikey, it is complex isn't it. Would it be less complicated if my parents just gave me the money so the deposit is is my name legally, or would they want to know where it has come from?

emsywoo123

Thrugelmir wrote: »

This is a sizable amount of money. What's the source?

Their mastermind criminal background, obviously.

Without being rude, is this relevant?

ACG

emsywoo123 wrote: »

Crikey, it is complex isn't it. Would it be less complicated if my parents just gave me the money so the deposit is is my name legally, or would they want to know where it has come from?

I would just make an appointment with a broker personally.
I think me and Richard have different views on how this should be placed, so by asking on here you could get conflicting answers and we are all basing it on limited information.

If you sit down with a broker, they will get everything relevant from you and make a recommendation.

There is another thread about where the deposit comes from and how it could be classed as fraud if you lie/conceal. As I said before, my theory is to do it the right way then you have nothing to worry about.

Richard_Pia

Good advice from ACG. Once a broker has all the information to hand, they will be able to navigate the minefield of lenders' criteria, and ultimately recommend the most suitable and competitive product available to you.