Help to buy ISA if not on mortgage

l0l707

Hi I hope you are all well! 

Me and my partner are in the process of trying to buy a shared ownership house. My partner started his new job in January so has been employed for two months. I am currently a self-employed, and also do some ad hoc cover at a preschool. 

We are trying to purchase a shared ownership property at which we would own 40% of the property for just over £80,000.

When we got our initial mortgage and principle we were told would be able to afford this. However our mortgage advisor is now saying that my patner would need at least three months payslips, and even then it may not be possible to have both of us on the mortgage as they are saying that I would class as a dependent without having two years books as a self employed person.

Therefore they are suggesting that the way in which to day forward is for my partner to be the only one on the mortgage. Although this is not ideal, we would be prepared to do this as when we remortgage I would then be able to be put on the mortgage. However I am worried that if this is the case, I won't be able claim the bonus I have accrued on my personal help to buy ISA. The plan was to use the money I had in that for the deposit for the house in this case would I still get the bonus as it is going towards a house or do I need to be named on the mortgage? 

Thank you in advance for the advice

l0l707

Just to add we will both be first time buyers. 

silvercar

So many reasons not to do this. The inability to use your HTB would be the least of your problems if the relationship turned sour.

_Penny_Dreadful

l0l707 said:

Hi I hope you are all well! 

Me and my partner are in the process of trying to buy a shared ownership house. My partner started his new job in January so has been employed for two months. I am currently a self-employed, and also do some ad hoc cover at a preschool. 

We are trying to purchase a shared ownership property at which we would own 40% of the property for just over £80,000.

When we got our initial mortgage and principle we were told would be able to afford this. However our mortgage advisor is now saying that my patner would need at least three months payslips, and even then it may not be possible to have both of us on the mortgage as they are saying that I would class as a dependent without having two years books as a self employed person.

Therefore they are suggesting that the way in which to day forward is for my partner to be the only one on the mortgage. Although this is not ideal, we would be prepared to do this as when we remortgage I would then be able to be put on the mortgage. However I am worried that if this is the case, I won't be able claim the bonus I have accrued on my personal help to buy ISA. The plan was to use the money I had in that for the deposit for the house in this case would I still get the bonus as it is going towards a house or do I need to be named on the mortgage? 

Thank you in advance for the advice

You won’t own the property so you cannot use your HTB ISA towards the purchase. 

l0l707

silvercar said:

So many reasons not to do this. The inability to use your HTB would be the least of your problems if the relationship turned sour.

Hi, thanks for you reply.

How do you mean?

In my understanding the risks are not really greater than a traditional mortgage. We are also drafting a contract between the two of us if things did unfortunately go sour and what our responsibilities would be. 

Thanks again

l0l707

_Penny_Dreadful said:

l0l707 said:

Hi I hope you are all well! 

Me and my partner are in the process of trying to buy a shared ownership house. My partner started his new job in January so has been employed for two months. I am currently a self-employed, and also do some ad hoc cover at a preschool. 

We are trying to purchase a shared ownership property at which we would own 40% of the property for just over £80,000.

When we got our initial mortgage and principle we were told would be able to afford this. However our mortgage advisor is now saying that my patner would need at least three months payslips, and even then it may not be possible to have both of us on the mortgage as they are saying that I would class as a dependent without having two years books as a self employed person.

Therefore they are suggesting that the way in which to day forward is for my partner to be the only one on the mortgage. Although this is not ideal, we would be prepared to do this as when we remortgage I would then be able to be put on the mortgage. However I am worried that if this is the case, I won't be able claim the bonus I have accrued on my personal help to buy ISA. The plan was to use the money I had in that for the deposit for the house in this case would I still get the bonus as it is going towards a house or do I need to be named on the mortgage? 

Thank you in advance for the advice

You won’t own the property so you cannot use your HTB ISA towards the purchase. 

Hi, thanks for you response. Would this be because my name would not be on the mortgage, as it's my understanding that shared ownerships are covered in Help to buy ISAs?

PRAISETHESUN

l0l707 said:

silvercar said:

So many reasons not to do this. The inability to use your HTB would be the least of your problems if the relationship turned sour.

Hi, thanks for you reply.

How do you mean?

In my understanding the risks are not really greater than a traditional mortgage. We are also drafting a contract between the two of us if things did unfortunately go sour and what our responsibilities would be. 

Thanks again

My understanding is that mortgage lenders won't be happy to have someone named on the property deeds that is not also named on the mortgage. They probably won't also be happy with you loaning money to your partner for them to complete the purchase themselves. They will require it to be a gift, which gives you very little recourse to getting it back if things turn sour. 

l0l707

PRAISETHESUN said:

l0l707 said:

silvercar said:

So many reasons not to do this. The inability to use your HTB would be the least of your problems if the relationship turned sour.

Hi, thanks for you reply.

How do you mean?

In my understanding the risks are not really greater than a traditional mortgage. We are also drafting a contract between the two of us if things did unfortunately go sour and what our responsibilities would be. 

Thanks again

My understanding is that mortgage lenders won't be happy to have someone named on the property deeds that is not also named on the mortgage. They probably won't also be happy with you loaning money to your partner for them to complete the purchase themselves. They will require it to be a gift, which gives you very little recourse to getting it back if things turn sour. 

That makes sense, I'll be sure to have a discussion about it with my partner and bring it up to a solicitor. I very much appreciate your reply - thank you!

sheramber

I was not working but was on the mortgage with my husband and joint owner of the house.