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Only 1 person on the mortgage when 2 people buy?
sendu
Posts: 131 Forumite
Let's say there's a house person A wants to buy, but with their own savings and a mortgage, they'd be 25% short.
Person B has terrible credit and no job but is able to get a gift from their parents for the remaining 25%.
A & B are considering buying the house together.
Is it possible for only A to be on the mortgage, with both A & B on the deed?
Or what's the best way of structuring something like this?
Person B has terrible credit and no job but is able to get a gift from their parents for the remaining 25%.
A & B are considering buying the house together.
Is it possible for only A to be on the mortgage, with both A & B on the deed?
Or what's the best way of structuring something like this?
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Comments
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I very much doubt that A will be able to use B's parents gifted money and not be named on the mortgage. Is B going to get a job in the very near future?0
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foxy-stoat wrote: »Is B going to get a job in the very near future?
No, B is never going to get a job. B lives off their parents.0 -
...In which case, if I were person A I'd be very wary about getting into any financial/house sharing arrangement with person B....0
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...In which case, if I were person A I'd be very wary about getting into any financial/house sharing arrangement with person B....
Other than the cash from B's parents for the purchase, A has no other need for money from B.
If both A and B must apply for the mortgage together, does B's credit rating negatively affect the mortgage that A could have gotten alone in any way?0 -
Other than the cash from B's parents for the purchase, A has no other need for money from B.
If both A and B must apply for the mortgage together, does B's credit rating negatively affect the mortgage that A could have gotten alone in any way?
Probably yes. If I was A, I would save the other 15%, or try and increase earnings by enough that allows me to borrow the other 15%. Keep B's name off everything.0 -
Are A & B going to be living in the property together?0
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foxy-stoat wrote: »Keep B well out of it.
Can you elaborate on the issues that could arise?
Assuming B can be trusted 100%, are there any legal issues or mortgage company issues that could arise with this structure?0 -
You cannot assume anything - B has no job, B will have a financial hold over A's home and can make it very expensive if A wanted to sell in the future or if B gets married or is made insolvent or bankrupt.
Also A will have an additional 3% stamp duty to pay, assuming you can find a lender that will allow this structure.0
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