To consider this financial arrangement?

[MortgageMusings24]

DP and I have just started house hunting and unexpectedly found something we love really quickly. Snag is DP has just got a promotion earning significantly more than before. DP's previous salary doesn't really help our affordability calculation as a couple and the bank want to see 3 months evidence of the new salary before offering a high enough joint mortgage. I am on a good salary and we both have decent cash deposits from savings. I could actually raise a big enough mortgage myself and make an offer using both our savings as a deposit. This includes leaving us with about £12k each for a rainy day. Even if the mortgage was in my name only, our intention would be to actually split it 50/50 and we need some legal advice about whose names can be on the deeds. I could afford the repayments if we split and he stopped contributing (which I don't expect but its sensible to consider!) but it would be a significant change in my disposable income. I'm wondering what additional risk I'm actually opening myself to here as I know that even with a joint mortgage, both parties are liable for action if one stops paying so this doesn't seem incredibly different. Am I missing anything? Would you consider this setup or let the beloved property go? If it makes any difference, we're not married but hope to next year.

I'd get to the registry office and get married asap. Then you are both legally secure. Then buy as you suggest. Have a big party wedding a year later for family etc.

Hopefully someone will be along to let you know how best to protect yourself, but me personally...I would not do this for a man who I aasnt married to.

If I'm reading this correctly you'd both give cash deposits (about the same amount?) but only you'd be on the mortgage. You'd want the deeds to be in both names.

We were in this situation 18 months ago. (Though I was your partner)
This is a bit of a tricky one as not many mortgage companies will accept different people on mortgage and deeds. In your scenario your DP would be the one who would be more financially vulnerable. He'd have to gift you his deposit.

What we did in the end was get a mortgage in both names, but not use my salary. Initially the mortgage advisor said the lender would then see me as DH's dependent and take £60k off what they'd lend us! However, we changed brokers to John Charcol and the advisor as part of her application pack argued that there was proof of my earnings to not to count me as a dependent going into the bank account on a monthly basis (£12.5k basic salary as company director, presumably your partner earns more!).

Another thought is how many months pay slips does your DP have? If he already has 1 or 2 you could drag it out a little bit if you have a mortgage AIP you could show the estate agent. You are not obligated to have the same mortgage as the one you said you would.

Are they deeming him a cost rather than contributor right now?

Is his promotion with the same company? Have you got his employer to confirm to the bank on writing that the increase is effective immediately and that there is no probabationary period? Will they accept that?

Can you play delay tactics? Get the approval you need now which means you can purchase in your sole name worst case scenario and buy time in terms of signing contracts, completion date etc and update the mortgage approval before completing the sale?

Thanks so much everyone, some really good points here I had no idea about like it being a problem having different names on mortgage and deeds, and DP potentially being classed as a dependent! He's got 1 month of earnings so I think we'll make some enquiries with mortgage companies but delay tactics might get us the time we need!

We had this when we were looking for current house, we were gazumped lost the house we loved then I got an unexpected promotion , bank accepted a letter from my employer and copy of my new contract, it increased our affordability which meant we could buy the house we now have, which was a complete project but much bigger and in a nicer area than the one we lost, so it felt like fate that that fell through.

Is his promotion with the same company? If so they may well be happy to accept his last three payslips but just treat it as the lower salary for affordability purposes.

What you need is a really good independent broker.