Would you do this ?

[Molly333]

Hello advice please
I'm a single mum and have my own home , worth approx 34000 mortgage of 40000. I'm contemplating buying a home with my partner ( he has no equity or savings but earns 40000) , the mortgage would be 10000 to him and 35000 to me ( he wants to get back on the property ladder) .

My risk is the deposit is my equity ( 30000) as should he not pay the mortgage the mortgage company will take my equity !

My dilemma is should u stay in my home ( but too small) or do I run the risk . I'm scared witless about making a mistake .

Note- my money will be legally written by a solicitor and a tenants in common document made

[Molly333]

Sorry to clarify we need a mortgage of 140, 000 to buy the house , of which I'm taking on 35000, the rest he is taking . However the mortgage is in joint names and my equity is needed . we are both 47 years old

[Grumpyoldblonde]

Sorry Molly this isn't too clear, your home is worth 34k and you have a mortgage of 40k?
How long have you been with your partner? You sound like you are not too sure of him if you're worried he won't pay the mortgage. The mortgage would be joint? But you are providing the deposit, is that right?
In which case you would need to speak to a solicitor and have your deposit 'ringfenced'. If it's a joint mortgage then you are both liable for the monthly payments. The other way I read this is you are providing the deposit for his mortgage and you would effectively be his tenant. In which case I would not go near this plan at all. How would you benefit from any increase in value if you sell the new property?
As I say though your post isn't terribly clear so it's hard to comment properly.

[Grumpyoldblonde]

Sorry, I see the mortgage would be joint. Well, why do you think he wouldn't pay the mortgage? Do you work? You say he would be taking on the rest, I assume you mean the monthly payments by that? As I said before on a joint mortgage you are both responsible for paying it, so if he did a runner one night you still have to pay the mortgage. Maybe as you have kids you don't work?

[Molly333]

Sorry I've not been clear
-The house we are buying is 425000
-My house will sell and generate 280000 deposit , partner will make no deposit as he's come out financially badly from a divorcee NOTE - him and his wife accrued debt and defaults in mortgage ( worries me though he's not been in debt since and states he's learnt a huge lesson)

• new mortgage will be split 100000 to him and 350000 to me ( he wishes to get on mortgage ladder and I want a small mortgage)
  

My money put in will be cited in a tenants in common agreement

Would you ? X

[Grumpyoldblonde]

You clearly have doubts. I can only advise you listen to your instincts. I don't understand the mortgage split unless you mean he pays more of the monthly repayments. You would still be liable for the lot on a joint mortgage. Is this a new relationship? If you are sure he is comitted at least get a joint account that you can monitor equally.

[gratesnakes]

If you have any doubts at all, don't do it yet. Fools rush in and all that. Wait another six months and then revisit the idea? Apparently house prices are likely to stagnate for a couple of years so there is no rush for your partner to get back on the housing ladder.

[gratesnakes]

If you want to live in a bigger house with your partner but not get into bed with him financially, what about this solution:

• You rent out your house to tenants.
  
• He purchases a buy to let property.
  
• You rent a bigger house together.
  

That could work for everyone and your existing house would be safe for you and your kids if the relationship ever ends.

(My best friend mingled her house and finances with her second husband and they are now getting divorced and it has been a financial disaster for her.)

[Molly333]

To update any of you who kindly commented on the post , I have made a decision to pull out and actually instantly felt relieved . Importantly I told my partner who was lovely and kind although he cried we've decided to leave living together until next year to give us both more time to see what we want . Thanks so much for ur support its really appreciated

[Grumpyoldblonde]

I think you're wise. Good luck for the future.