Changing name on mortgage

singh001

Hi All,
So myself and partner are going through the process of buying a house but due to my partner being on furlough the bank has advised we need to wait until she returns to work. Which is dependent on the government lifting restrictions. The vendors are in a rush to sell. My brother has offered to do a joint application with me so we could get the amount we require. We would both be classed as FTB. Is this ok to do? Once the transaction has gone through we would then change the name on the deeds and the mortgage. Any help would be appreciated 

MovingForwards

You and your brother buy the house.
You then remortgage to remove brother and add partner, paying ERCs, legal fees etc. If your brother has no lived in the property CGT is payable.

Why not speak with a good broker to see what lenders are available for you and your partner based on your circumstances.

yksi

Her being on furlough indicates there is likely to be insufficient work for her at present - and that her job is not secure. Plenty of people have thought their job was secure and then found out the hard way that "viable" businesses still fell apart due to a lack of cash flow and just couldn't stay afloat. So if she lost her job when lockdown lifts (or anytime in the next six months really), would your income, on its own, be enough to live on, including the mortgage repayments? 

If the answer is no, you should not go ahead with this purchase. Secondly, if she did lose her job and you can't remortgage, brother is stuck with the mortgage too. The bank can go after him for the whole amount outstanding if you can't pay - meaning he risks financial ruin if bad things happen to your wife's job. Not to mention what it does to family harmony.

Banks have a whoooooole load of data available to them on assessing risk, and what they are telling you here is that they think there is a significant risk that you will default on the mortgage, so they are not willing to risk you. They won't even face financial ruin if she loses her job, and they still think it's too risky. You should probably trust them.