Only 1 person on the mortgage when 2 people buy?

davidmcn

sendu wrote: »

No. B has their own property.

In that case it's difficult enough as it is, as lenders generally want you to be either an owner-occupier or a landlord, not a mixture of the two.

maladict

It might be different elsewhere, but in Scotland the mortgage provider would ask for a signed letter from B's parents stating that they are gifting the money to A alone for the purchase of the property, that they do not seek repayment of the money, and that they will have no financial interest in the property.

Is A planning to live in the house, or is it a buy to let plan?

The people most at risk are surely B's parents, who could see A waltz off with their gifted deposit with no comeback.

foxy-stoat

maladict wrote: »

The people most at risk are surely B's parents, who could see A waltz off with their gifted deposit with no comeback.

The moment they gift the money that is the last they will see of it, so there is no risk to them as they will have no comeback any way.

maladict

foxy-stoat wrote: »

The moment they gift the money that is the last they will see of it, so there is no risk to them as they will have no comeback any way.

What I mean is, they'd presumably be gifting the money in the expectation that B would get something out of it (quarter of the house) yet it's unlikely that the mortgage company would agree to that. So they'd be relying on A abiding by an unenforceable gentleman's agreement if the house was sold or B wanted to cash in on his/her 'share'.

steampowered

No, lenders expect to have security over the entire property. Not just a share of it.

[Deleted User]

Could B's gift you the funds and register a charge on the property for repayment of the funds on sale? Some good lenders allow this.

Would also save you a lot of stamp duty this way

zagubov

Deleted_User wrote: »

Could B's gift you the funds and register a charge on the property for repayment of the funds on sale? Some good lenders allow this.

Would also save you a lot of stamp duty this way

Sounds like you're describing a personal mortgage then? Only a few mortgage providers would then agree to provide the main mortgage.
Might need a mortgage advisor on this.

[Deleted User]

zagubov wrote: »

Sounds like you're describing a personal mortgage then? Only a few mortgage providers would then agree to provide the main mortgage.
Might need a mortgage advisor on this.

Or just B registering a 2nd charge on the property. There are numerous high street lenders that accept this no issues and no impact on main mortgage borrowing. It's just a different form of gifted deposit

davidmcn

maladict wrote: »

It might be different elsewhere, but in Scotland the mortgage provider would ask for a signed letter from B's parents stating that they are gifting the money to A alone for the purchase of the property, that they do not seek repayment of the money, and that they will have no financial interest in the property.

Lenders generally only agree to gifted deposits anyway if they're from close relatives of their borrower - not contributions from unrelated parties.

ReadingTim

sendu wrote: »

Or what's the best way of structuring something like this?

It really depends on whether you're A, or B.

What's "best" for A is unlike to be best for B, and vice versa; regardless of how much they think they can "trust" each other.