Joint Mortgage

Posted on 2 March 2011 by Julie


My boyfriend wants a better mortgage deal(move to offset). However, because of time spent renovating a house over the last couple of years his self employed earnings have dropped. On his own, he can no longer borrow the amount needed to pay back his current provider. I am happy to go joint names on the mortgage but most providers wont let us unless I go on the Deeds too. I may only have to do this a couple of years before his finance/income improves and mean he can refinance on his own. Will it appear that I half own the house and when the names revert back to orginal. Will the tax man think I have inherited half a house? Its his house I just want to help for a while but nothing seems simple.

Julie,

There are a few Lenders who will consider a mortgage in more names than the title deeds and this will avoid any problems regarding the apparent sale of the property. You must realise though that this would mean you carried a full liability for ensuring the mortgage payments are met without any the benefits of ownership.

I recommend that you speak to your Solicitor about this and also about purchasing as Tenants in Common. In this way it would be possible to have the deeds and mortgage in joint names but the actual ownership can be split to any proportion, not just 50/50.

Once you have taken legal advice, I believe you would benefit from speaking to one of our independent mortgage advisers. Please call on 0344 346 3672 tell the consultant the date and title of your question, they will be able to look at your situation and advise you further.

Peter

Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.

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