Questions about morthage with boyfriend

venue55

Hello, me and my boyfriend are looking to buy a house we will live in together.

He works full time at a stable job, has a good credit rating and would contribute 80% of the deposit.
I do not have an income at the moment as I am looking to do a masters degree, I am not sure what my credit rating is and would contribute 20% of the deposit.

When we take out a mortgage, he would be the only applicant, however I am looking for a way for me to get my share of the deposit money back in case we were to break up. How would I go about doing that, would it be some sort of document? Would the document mean we have share ownership of the property?
Alternatively, would having me as part of the mortgage (with my credit rating being neutral/negative) be possible, and would it decrease the amount of money we could borrow?
Lastly, if we were to break up, would I be protected legally at all from just being kicked out of the house or would we need to be married for me to have these rights?

Thank for your help.

muhandis

The situation you have described (differing contributions to deposit and ongoing maintenance, mortgage costs) is not uncommon and the solicitor should know how to draw up the deeds in a manner that protects both your interests.

I think what the solicitor will have done is a “floating deed”, also called a commensurate share deed, drawn up. Instead of giving fixed amounts or percentages, the deed sets out the formula to be used to calculate each owner’s share at the point the property is sold or one owner buys the other out. This kind of deed is also more appropriate for people who are contributing uneven amounts to the mortgage.

Having said that, if your name is on the title deed, it will have to be on the mortgage as well (only HSBC allows two owners with only one person on the mortgage and it's a convoluted process). As long as the situation meets the affordability criteria on a single income, and you don't have major issues with your credit history, a decent broker should be able to get you a mortgage. Definitely contact a broker to look at the entirety of your circumstances.

venue55 wrote: »

Hello, me and my boyfriend are looking to buy a house we will live in together.

He works full time at a stable job, has a good credit rating and would contribute 80% of the deposit.
I do not have an income at the moment as I am looking to do a masters degree, I am not sure what my credit rating is and would contribute 20% of the deposit.

When we take out a mortgage, he would be the only applicant, however I am looking for a way for me to get my share of the deposit money back in case we were to break up. How would I go about doing that, would it be some sort of document? Would the document mean we have share ownership of the property?
Alternatively, would having me as part of the mortgage (with my credit rating being neutral/negative) be possible, and would it decrease the amount of money we could borrow?
Lastly, if we were to break up, would I be protected legally at all from just being kicked out of the house or would we need to be married for me to have these rights?

Thank for your help.

iquit

Definitely get solicitor involved to draw up the appropriate documentation. Get a broker to help with finding you a lender who looks favourably on your situation. Good luck.

Kami_J

Just a thought. Have you considered not being a part of this transaction and letting him buy on his own? Being a first time buyer has a lot of perks and it could be useful if you buy a new place or if you were to split up and you wanted to buy in the future...

middleclassbutpoor

Kami_J wrote: »

Just a thought. Have you considered not being a part of this transaction and letting him buy on his own? Being a first time buyer has a lot of perks and it could be useful if you buy a new place or if you were to split up and you wanted to buy in the future...

MSE Pragmatism at its finest....

Thrugelmir

Kami_J wrote: »

Just a thought. Have you considered not being a part of this transaction and letting him buy on his own? Being a first time buyer has a lot of perks and it could be useful if you buy a new place or if you were to split up and you wanted to buy in the future...

Perhaps the deposit might be an issue.