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Buying a house with brother

(7 Posts)
Icandoanything Sun 15-Nov-15 21:10:50

I am a supply teacher and earn approx £20, 000 a year. However, because this is split between 3 seasonal jobs that I have held for the past 4 years, the mortgage I would be able to get just falls short to get the type of house I would like.I have been to an independent mortgage advisor who says he can see that it would be my employment status that would cause problems (6 month contract etc)

My brother earns £15,000 and has been in his job over 10 years. He has his own house and has 2 years left to pay on this. He has agreed to out his name on a mortgage with me in order to get that little bit of a better mortgage. It would be in name only and all the finances would be covered by me.

I could afford the repayments as I have checked all the calculators. Without him I could get approx 85,000 max and with him I could get 160,000 minimum. I would need 130,000 max to get the kind of house I would want in the area I would want. I'm a single parent and don't envisage selling this house and moving in the next 15 years. So I really want somewhere I can grow and am happy with as opposed to buying a house I am unhappy with if I have the chance to buy one I would really love.

My question is, if my brother went in with me but decided in 5 years, he wanted to buy his own house in another part of our area, what would happen to our mortgage? Could he just sign it over to me providing my income covers what's left? I don't envisage my income going above £20,000 as my industry doesn't really do payrises!

He is 40 next year and I'm 34. Any advice welcome

FrogFairy Sun 15-Nov-15 22:40:27

A few points to ponder.
If your brother gets divorced then your house would be classed as part of the marital assets.
He would have to make a will leaving his share of the house to you.
What would happen if one of you became babkrupt?
What would happen if you have a massive fall out?

FrogFairy Sun 15-Nov-15 22:40:52

Bankrupt.

Icandoanything Sun 15-Nov-15 23:06:30

My brother isn't married and I/he doesnt envisage him ever being.
I'm sure making a will wouldn't be a problem
I don't forsee any reasons why I or he would become bankrupt and surely a massive falling out would be on a par with what happens if a relationship breaks up?!

Sorry but would you raise those questions to someone who was buying a house with their spouse?! I don't intend on ever putting my future partners names on the mortgage and I most certainly believe my brother and I will be on friendlier terms than an ex wife and husband.

I was actually looking for advice about getting it transferred solely into my name after approx 5 years - sorry, I should have been more specific

cestlavielife Sun 15-Nov-15 23:54:09

Work out how much you will have paid off in five years time. What will mortgage be then..probably still way too high for you take on alone.

FrogFairy Mon 16-Nov-15 02:26:46

I apologise for offending you Icandoanything.

I have read far too many dismal threads on the relationship forum so always tend to look for possible pitfalls so yes my advice would be the same to anyone buying property with another person. Plus my own personal history is none too appealing tbh.

I hope it all works out well for you. Perhaps your mortgage advisor could clarify how things would stand if your brother wants to buy in five years time.

lalalonglegs Mon 16-Nov-15 21:30:36

But won't the fact that he already has a house and is paying a mortgage on that impact getting a mortgage to help you? Would it be possible for him (or someone else with a higher wage) to be your guarantor?

Whatever you decide, please, please get a legally-enforceable agreement detailing exactly how this arrangement will work before going ahead.

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