Mortgage in an IVA

Farcasting

Hi there just after abit of advice, im currently in the first year of on IVA and im getting abit old to live at home so was planning on moving out with my girlfriend she has a deposit.

Im just wondering how everything would stand as im guessing i wouldnt be able to get a mortgage but my girlfriend could, could she get the mortgage and my name still be on the property or if she was to get a mortgage with my mam would that be ok and i'd just be named or can i not be named if not on the mortgage

hope this makes sense
thanks

worried_jim

Not on your nelly!

Farcasting

it would be me and my girlfriends name would that be allowed? even tho im not on the mortgage

YHM

You wouldn't be on the mortgage or the deeds...

sheepy21

If you're not contributing any deposit and not paying the mortgage, why would you be a joint owner:think:

Farcasting

Sorry I wasn’t clear enough my Mam would be paying half the deposit and my girlfriend would be paying half, if it was just in my girlfriends name If we broke up the whole house is hers, so my Mam would be wanting me to be named on it but not for any sort of mortgage reasons air would my Mam and girlfriend be able to joint own it then once my IVA finished my Mam gift me her half? I literally have no idea how it works so any advice would be great cheers

sparkey1

One possible option is your mum lends the money, and gets a 2nd charge put onto the property.

However 2nd charges, usually need the permission of the first named charge (The mortgage company). Most mainstream lenders wont entertain this.

I take it that your not married, so your Mum is not related to your girlfriend. So most lenders would not be happy with your mum lending the money.

If your Mum gives your girlfriend the money as a gift, your girlfriend can just walk away and keep it!

There may be a lender out there, but I think you are going to strugggle. Go see a mortgage broker.

Farcasting

Ok thanks very much !!!128513;

MovingForwards

So you are now about 24, how much you got outstanding on your IVA?

You still at the same place doing loads of OT?

Can you save for a couple of years while in your IVA then when clear hit a few brokers up for guidance on getting a mortgage with your GF?

ACG

I would completely knock this on the head.

I can not think of any lenders who will allow an unrelated person (mum) to lend the deposit to sons partner and apply a second charge on the deeds as Sparkey suggests - I am happy to be corrected. The 2 things individually can be done with limited lenders but not combined as far as I am aware.

To the OP, I think you are being completely unrealistic. You seem to want your cake and eat it. If you come in to money whilst in the IVA, this needs to be declared and paid in to the IVA. You are playing a dangerous game by having your mum give money to your partner with strings attached for your benefit.

Mum going on the Mortgage with the partner might be an option, but if mum owns a property then you are going to be liable for higher stamp duty. Also mums age could be an issue.

I think you either need mum to gift deposit and take the risks that come with that, or let your partner buy on her own. The other issue here is what happens if you have kids and split up? You/your mum are unlikely to ever see that money again. Certainly not for many many years.

butterflybook

ACG has hit the nail on the head