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  • FIRST POST
    • john_mackinnon5
    • By john_mackinnon5 13th May 18, 10:51 AM
    • 3Posts
    • 0Thanks
    john_mackinnon5
    Desperate need of advice.
    • #1
    • 13th May 18, 10:51 AM
    Desperate need of advice. 13th May 18 at 10:51 AM
    Hi,
    I have recently discovered that I have been linked to a mortgage for the last 10 years.
    My brother, late mum and I purchased a property in Scotland.
    My late mum initially applied for help to buy on her own but as she was retired and a pensioner was refused. She asked my brother and I to assist.
    My brother already had a mortgage on a previous property in England and was advised to take out a consolidation loan / mortgage.
    The property in question was not expensive, just over 40,000.
    I took out a 20,000 loan to pay my share which I transferred into my brothers account, as he was taking out the mortgage.
    I have recently gone all the way through the house buying process, knowing I was on house deeds and knowing I would need to get off them to enable help to buy.
    Finding out now that I am linked to a 30 year mortgage has completely scuppered everything.
    My questions are:
    Can I take out a loan at the same time as a mortgage for the same property?
    Why would I take out a loan to pay my share if I was going on the mortgage?
    Can loans be used to pay for the deposit of the property the mortgage is being used for?

    I have never made any payments to the mortgage and have never received any correspondence regarding the mortgage.

    I am at my wife end as my brother lives and is self employed in Canada he is unable to do a transfer of title.
    He has never missed a payment and never knew I was tagged to what he considered to be solely his mortgage.

    Any advice on this matter is greatly appreciated as I have so much depending on getting off this mortgage.

    Many thanks

    J
Page 1
    • csgohan4
    • By csgohan4 13th May 18, 10:59 AM
    • 4,628 Posts
    • 2,896 Thanks
    csgohan4
    • #2
    • 13th May 18, 10:59 AM
    • #2
    • 13th May 18, 10:59 AM
    sadly another post why family and money shouldn't mix, I hope you get it sorted
    "It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"
    • dunstonh
    • By dunstonh 13th May 18, 11:01 AM
    • 93,359 Posts
    • 60,864 Thanks
    dunstonh
    • #3
    • 13th May 18, 11:01 AM
    • #3
    • 13th May 18, 11:01 AM
    Can I take out a loan at the same time as a mortgage for the same property?
    yes
    Why would I take out a loan to pay my share if I was going on the mortgage?
    a hypothetical we cant answer. However, people do it for home improvements etc.

    Can loans be used to pay for the deposit of the property the mortgage is being used for?
    Yes

    He has never missed a payment and never knew I was tagged to what he considered to be solely his mortgage.
    Who owns the property? the mortgage should match the ownership.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • john_mackinnon5
    • By john_mackinnon5 13th May 18, 11:01 AM
    • 3 Posts
    • 0 Thanks
    john_mackinnon5
    • #4
    • 13th May 18, 11:01 AM
    • #4
    • 13th May 18, 11:01 AM
    This is not a family dispute, I feel I may of been wrongly advised.
    • jaybeetoo
    • By jaybeetoo 13th May 18, 11:04 AM
    • 603 Posts
    • 282 Thanks
    jaybeetoo
    • #5
    • 13th May 18, 11:04 AM
    • #5
    • 13th May 18, 11:04 AM
    What did you sign 10 years ago? Have you got any paperwork?
    • minimike2
    • By minimike2 13th May 18, 11:08 AM
    • 1,994 Posts
    • 1,496 Thanks
    minimike2
    • #6
    • 13th May 18, 11:08 AM
    • #6
    • 13th May 18, 11:08 AM
    When you say "linked to" do you mean you are a named borrower to this mortgage?

    If so, unless your brother has committed fraud, then you must have had to sign for this mortgage. Did you not read everything you were signing? Who is the mortgage with?
    • john_mackinnon5
    • By john_mackinnon5 13th May 18, 11:15 AM
    • 3 Posts
    • 0 Thanks
    john_mackinnon5
    • #7
    • 13th May 18, 11:15 AM
    • #7
    • 13th May 18, 11:15 AM
    I know I have signed something, It was 10 years ago and as far as we all knew my brother was taking out the mortgage.
    It's with RBS.
    I have gone through the complaints process, as advised by the mortgage team.
    The response states that I "gifted" My 20,000 share. Should I not have completed a disclosure type document stating it was a gift?
    It also makes out that the loan I took out was for the deposit?
    According to the person I recently spoke to has informed me that loans cannot be used for the deposit.

    I am confused.

    I understand that I have signed something, I just feel I/we were misinformed.
    • minimike2
    • By minimike2 13th May 18, 11:21 AM
    • 1,994 Posts
    • 1,496 Thanks
    minimike2
    • #8
    • 13th May 18, 11:21 AM
    • #8
    • 13th May 18, 11:21 AM
    This doesn't really answer the question.

    Are you actually a named borrower on the mortgage?

    A gifted deposit would only be if you were giving the money to your brother to buy his own property, not for you to put in a a deposit on a property you would jointly own.

    Have you checked that you are actually on the deeds of the property? (Were you told that you were going to be, or did you think you were just providing the finance to enable the purchase of the property for your mother?)
    • dunstonh
    • By dunstonh 13th May 18, 3:17 PM
    • 93,359 Posts
    • 60,864 Thanks
    dunstonh
    • #9
    • 13th May 18, 3:17 PM
    • #9
    • 13th May 18, 3:17 PM
    The response states that I "gifted" My 20,000 share. Should I not have completed a disclosure type document stating it was a gift?
    Gifts can be made freely and require no documentation when it is a cash transfer. The bank has nothing to do with gifts you may or may not make.

    It also makes out that the loan I took out was for the deposit?
    In which case you would have signed to reflect that.

    According to the person I recently spoke to has informed me that loans cannot be used for the deposit.
    And does that person have extensive knowledge and background to know the rules in place 10 years ago? As it happens, you could 10 years ago. In theory you could still today although it is highly unlikely due to recent rule changes.

    I understand that I have signed something, I just feel I/we were misinformed.
    Lenders follow your instructions. They are not advising you. This is looking more like a family dispute.

    Who owns the property?
    Who is named on the mortgage?
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
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