Will a Declaration of Trust effect my mortgage application?

anon1311

Hi, looking for advice. 

Me and my partner are buying a house 50/50.. however he has a very good credit score and mine isn’t very good. Therefore we are thinking of putting the house in his name and then getting a declaration of trust which would entitle me to 50% of the equity, 50% of the house and 50% of the deposit. However.. will this effect the mortgage he is offered as if we defaulted on the mortgage payments, the home could not as easily be repossessed? Can you write something into the declaration of trust which would mean that if it does default they are entitled to your half too? (I am fine with that) and therefore wouldn’t effect your mortgage application. Thank you in advance. 

Thrugelmir

If you are putting in 50% of the deposit then this will have an impact on the mortgage application. 
If you reside in the property then you will need to sign an occupiers declaration waiving any rights. This will trump any DOT you have drawn up. 

anon1311

Thrugelmir said:

If you are putting in 50% of the deposit then this will have an impact on the mortgage application. 
If you reside in the property then you will need to sign an occupiers declaration waiving any rights. This will trump any DOT you have drawn up. 

What impact will it have on the mortgage application? 

Thrugelmir

anon1311 said:

Thrugelmir said:

If you are putting in 50% of the deposit then this will have an impact on the mortgage application. 
If you reside in the property then you will need to sign an occupiers declaration waiving any rights. This will trump any DOT you have drawn up. 

What impact will it have on the mortgage application? 

Gifted deposits are only allowable from certain sources by lenders. Loans are generally not allowable. 

anon1311

Thrugelmir said:

anon1311 said:

Thrugelmir said:

If you are putting in 50% of the deposit then this will have an impact on the mortgage application. 
If you reside in the property then you will need to sign an occupiers declaration waiving any rights. This will trump any DOT you have drawn up. 

What impact will it have on the mortgage application? 

Gifted deposits are only allowable from certain sources by lenders. Loans are generally not allowable. 

Could you gift half the deposit for money laundering purposes and then write in to the declaration of trust you would be entitled to this back? Or is there another way around it?

Thrugelmir

anon1311 said:

Thrugelmir said:

anon1311 said:

Thrugelmir said:

If you are putting in 50% of the deposit then this will have an impact on the mortgage application. 
If you reside in the property then you will need to sign an occupiers declaration waiving any rights. This will trump any DOT you have drawn up. 

What impact will it have on the mortgage application? 

Gifted deposits are only allowable from certain sources by lenders. Loans are generally not allowable. 

Could you gift half the deposit for money laundering purposes and then write in to the declaration of trust you would be entitled to this back? Or is there another way around it?

The source of the gift is the individual(s) making it. Normally this criteria will be a related family member. 

anon1311

Thrugelmir said:

anon1311 said:

Thrugelmir said:

anon1311 said:

Thrugelmir said:

If you are putting in 50% of the deposit then this will have an impact on the mortgage application. 
If you reside in the property then you will need to sign an occupiers declaration waiving any rights. This will trump any DOT you have drawn up. 

What impact will it have on the mortgage application? 

Gifted deposits are only allowable from certain sources by lenders. Loans are generally not allowable. 

Could you gift half the deposit for money laundering purposes and then write in to the declaration of trust you would be entitled to this back? Or is there another way around it?

The source of the gift is the individual(s) making it. Normally this criteria will be a related family member. 

How would I get round this, what are my options? 

kuratowski

Instead of trying to get round it, find an independent mortgage broker who can find a lender that is willing to work with your credit history.

anon1311

kuratowski said:

Instead of trying to get round it, find an independent mortgage broker who can find a lender that is willing to work with your credit history.

But that will increase the rate of the mortgage which is something we don’t really want to do?

kuratowski

Not necessarily.  There are some brokers who post on here and they often say a case is place-able at market rates.  How bad is your history?

anon1311

kuratowski said:

Not necessarily.  There are some brokers who post on here and they often say a case is place-able at market rates.  How bad is your history?

No CCJ’s, DMP in place. A couple of Defaults but gradually paying things off in lump sums, credit score is poor however.