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Hi there, thanks for taking the time to read this!
Right, I will try and make this as short and simple as possible. Me and my girlfriend have decided to buy a house together, I am in full time employment and she is a student for one more month, she will then be getting a job, hopefully within a month or two of finishing her degree. We have found a house which we both love and put an offer in on it, eventually accepted which was now four weeks ago so the vendor is getting a bit anxious.
Then the problems start, no one would give us a mortgage, the house value/offer is £158,000 and both of us can contribute 5% each as a deposit leaving £142,200 as a mortgage loan required. Because my girlfriend has no salary, no-one would lend us the money; after all it is more than 5 times my salary. It was looking a bit doom and gloom and we really didn't wanna lose the house, but good news..... HSBC said they would lend the £142,200 we needed no problem and at a fantastic rate of 5.88% fixed for 2 years.
However, they declined it on a joint application - stating that my salary would not support the mortgage, bills and my girlfriend. I tried to explain to them that she would have a job very soon and I would not be supporting her but they wouldn't have it. They then advised that if we put it through in just my name then it might be accepted, low and behold it was. I have paid the £499 booking fee, which means the rate expires in 3 weeks and it is non-refundable after that.
The problem is that my girlfriend is concerned that she is putting half the deposit down, £7900 and will be paying half the monthly mortgage repayments but on the mortgage it will only be in my name. I can understand her worries because I would not want to pay that money and have nothing to show for it. What happens if we split up or if I die, what will happen to the house, will she be entitled to have it, or her half of the money?
HSBC have already said that they may be able to add her to the mortgage once she has a job but there is no guarantee of this, it will depend on alot of things. A solicitor has explained she cannot be on the deeds with me as 50/50 ownership if she is not on the mortgage. We really don't wanna lose the house, ie wait until she gets a job and 3 months of wage slips etc so that is not an option! So my questions are this
Thanks in anticipation
Alex Wood
Right, I will try and make this as short and simple as possible. Me and my girlfriend have decided to buy a house together, I am in full time employment and she is a student for one more month, she will then be getting a job, hopefully within a month or two of finishing her degree. We have found a house which we both love and put an offer in on it, eventually accepted which was now four weeks ago so the vendor is getting a bit anxious.
Then the problems start, no one would give us a mortgage, the house value/offer is £158,000 and both of us can contribute 5% each as a deposit leaving £142,200 as a mortgage loan required. Because my girlfriend has no salary, no-one would lend us the money; after all it is more than 5 times my salary. It was looking a bit doom and gloom and we really didn't wanna lose the house, but good news..... HSBC said they would lend the £142,200 we needed no problem and at a fantastic rate of 5.88% fixed for 2 years.
However, they declined it on a joint application - stating that my salary would not support the mortgage, bills and my girlfriend. I tried to explain to them that she would have a job very soon and I would not be supporting her but they wouldn't have it. They then advised that if we put it through in just my name then it might be accepted, low and behold it was. I have paid the £499 booking fee, which means the rate expires in 3 weeks and it is non-refundable after that.
The problem is that my girlfriend is concerned that she is putting half the deposit down, £7900 and will be paying half the monthly mortgage repayments but on the mortgage it will only be in my name. I can understand her worries because I would not want to pay that money and have nothing to show for it. What happens if we split up or if I die, what will happen to the house, will she be entitled to have it, or her half of the money?
HSBC have already said that they may be able to add her to the mortgage once she has a job but there is no guarantee of this, it will depend on alot of things. A solicitor has explained she cannot be on the deeds with me as 50/50 ownership if she is not on the mortgage. We really don't wanna lose the house, ie wait until she gets a job and 3 months of wage slips etc so that is not an option! So my questions are this
- How can I ensure that my girlfriend will be entitled to half of the house even though her name is not on the mortgage should something bad happen
- Show that she has paid half the 10% deposit and will be paying monthly repayments
- What is this called
- How much will it cost etc etc
Thanks in anticipation
Alex Wood
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