Confused first time buyer mortgage question regarding a partners house as a deposit.

bricam2096

Ok, middle aged first time buyer needing some advice and getting more confused reading webpages and forums. I hope someone, preferably in the same situation can help me.

Ok, the situation is that I live alone and am going to buy a house with my partner (she owns her house outright). Her house is sold, we have had an offer accepted on a house to live together. Her house sale money would be used as a deposit for the new house and the remaining balance would be paid by me, getting a mortgage.

I’ve never owned a house so how can I get a “first time buyer” mortgage if I don’t have the deposit as cash? Obviously the money for the deposit would be her house but how can a first time buyer already have a house (for deposit)? The mortgage will be in my name only as I am working.

I guess I simply need advice in laymans terms, preferably from people in similar situations before our next step.

haras_n0sirrah

It will be very difficult to have a sole mortgage using the deposit of your partners sale. If you were to split up would she leave you with the deposit? You would need to do a joint mortgage. If you are the only one paying it that doesn't matter but the house would also have her name on it which would protect her money. You could buy as tenants in common so she owns the share covered by her cash and you own the rest if you want to.
With the current stamp duty perks being equal for everyone there aren't many current first time buyer perks around 

[Deleted User]

you wont be getting a first time buyer mortgage as your partner is not a first time buyer. You’ll buy the house together with her deposit and a joint mortgage. No doubt you’ll set out between you who pays what, and who owns how much of the house each in the event you separate. Also you need to decide if you own as beneficial joint tenants ( goes to other if dies ) or tenants in common ( can leave your share in a will to anyone ) 

EDITED - just noticed your sole name. Your partner would be absolutely mad to agree that !! She would have to “gift” you the deposit, but any lender will know its not a real gift as she will be living in the house and want a claim in it. Just because she is not working does not mean she cannot be on the mortgage.
yours is a crazy idea, stick to what I said above 

bricam2096

Thank you for the replies so far. My partner would own most of the house, the actual amount of money I need to make up the balance is not a huge amount (£35k) so didn’t think a joint mortgage was needed, especially as she isn’t working.

haras_n0sirrah

The mortgage and the deeds must match so to be on the house they would also need to be on the mortgage

dimbo61

You need to do this right.
Have it written down what would happen if you split up.
She gets £Xxxx amount from the sale of the property or X percent depending on price of property and her deposit

Thrugelmir

bricam2096 said:

Thank you for the replies so far. My partner would own most of the house, the actual amount of money I need to make up the balance is not a huge amount (£35k) so didn’t think a joint mortgage was needed, especially as she isn’t working.

Your solicitor can draft up a Declaration of Trust. This will legally state the division of the equity in the property. You also need to consider having wills drawn up in order that all eventualities are covered.