Am I about to make a huge financial mistake?

[MaryMaryVeryContrary]

DP and I have 2 children. Unmarried - he proposed but kids came along and can got kicked down the road. Didn’t see the urgency - I have my own career and money, but we keep meaning to as administratively it would tie up a few loose ends.

We have been together 8 years and after 1 year I rented out my flat and moved into his house. Tried to sell my flat during covid but no interest whatsoever so rented it out again. Now it is sold and the time has come to pool our cash and buy the family home we really want.

We found a property, got an offer on his house and all seemed to be going well. 1 week before exchange we discovered our plan - for me to contribute half the funds, and for him to take out a mortgage for the other half - isn’t viable as the bank won’t lend a mortgage to a person where another person jointly owns the property. Either we go on the mortgage together or nothing.

The issue is I have (paid off, from 2014) CCJ from an unpaid parking fine; and (believing I was sensible) have never had a credit card, so my credit rating is being refused for a mortgage.

I’ve been advised to give my (huge as an inheritance - 150k) deposit to DP, he then buys the house as a sole owner and I get a deed of trust to ‘protect my share’.

I feel everyone is trying to rush me into this and while I have an appointment with a solicitor next week, I would be really grateful for any input from others on what they would do. My gut tells me this isn’t a good idea.

Hell no.
Pull out.
Build up your credit.
Get married. Or get legal protections in place to protect your money in YOUR name.
Then buy a property.

How can a CCJ from 10 years ago have an impact? I thought they were cleared after six years

@MaryMaryVeryContrary

He’s insisting he informed the broker of our position so I offered to phone them myself to complain. Now he’s squirming.

The fact that he started to squirm when you mentioned contacting the broker is a HUGE HUGE red flag. He's not being honest with you. If he was he would have said 'Good idea, maybe you can figure some way for this to work for both of us'.

It may be that he's told the broker some 'innocent' porkies to get them to approve the mortgage. Or it may be he's told them porkies to screw you financially. Until you speak to them yourself you won't know which is true. But before you take another step, you need to clarify what the broker 'knows'. Do this before you see the solicitor.

Personally I wouldn't go for just a Ring Fence on my 150K. I'd want an increased percentage on my original investment (150K + a % earned on that 150K) + plus half the equity. But I wouldn't put one penny into a house that didn't have my name on the deeds.

Where I am (US) a person can be put on the deeds without being on the mortgage. Is it not the same in the UK?

Ok so on one hand marriage would make sense - basically in case of his or my death.

But on the other hand it wouldn’t offer much. If we split, and on paper things were divided 50/50, he would get more out of me than I would him as I have much more equity. However he earns double what I do so I wouldn’t see that as fair. If we split tomorrow I would be fine - I’ve got my own career which, while it pays less than him, is comfortable and also my large deposit.

So the nonchalance about marriage hasn’t been in ignorance. There are pros and cons to both for me.

As for DP, while I would absolutely trust him not to do anything dishonourable with the money, I’ve always told myself no matter how much I trust a man I should never make myself vulnerable again. Just in case.

I think what I’m going to do if I can’t be a joint owner of the property, is focus on improving my credit score over the next 6 months and take it from there.

Really appreciative of all comments.

It is legally possible, in that the legal mechanism exisits to do it, but banks won't agree to it because they won't be able to take possession in a default situation.

It can happen. We had it. Mortgage in principle all sorted. It doesn’t all go to the underwriters until after offer and it’s very possibility that’s the point issues arise.

My husband and I did exactly what has been suggested but we were married so I wasn’t that bothered. I still took advice though, unless there’s a risk of negative equity you’re fine.

Mortgage companies aren't wild about people with a financial stake in the property not being on the mortgage.

Go and see a broker. Explain your situation and ask what the options are. As I said earlier we found it easy enough in a similar situation to you.

In our situation credit was good, but Mr Monkey had no provable income having just started contracting, but he was providing 60% of the purchase funds in cash and we weren't (and still aren't) married.

We are both on the mortgage, bought as tenants in common and have a deed of trust.

Nope, you're just lucky he's so far proved to be honest.

Foolish, but lucky.

Hilarious the number of posters recommending marriage!!!

DO NOT GET MARRIED - you're putting YOUR 150k at risk if you go this!

Go on the mortgage jointly and get a deed of trust to protect your 150k.

Marriage will invalidate a deed of trust, avoid like the plague.

Honestly why do mumsnetters believe marriage protects women?

When I was young and foolish and shafted by my husband, I ended up declaring myself bankrupt. There really was no other choice and I had been totally screwed over financially.
As a discharged bankruptee many years later I found it hard to get a mortgage but Skipton accepted me. I had a very good salary and a good deposit for a house and the rent I paid was far more than the mortgage each month would be. A financial advisor would help you find a mortgage where it’s a person who decides and not a computer.

Follow your gut

To be honest I think you need to be in all contact with the company going forward. Don’t let him speak with them alone. I don’t really trust what your partner has said around you being refused a mortgage due to your credit. Have you even got any recent hard or soft searches on your credit report?

I don’t necessarily think your 10 year old CCJ would be relevant as a quick search states:

A CCJ will stay on your credit report for six years, even if you pay it off during this time. After six years it will no longer appear on your credit report, even if you've not paid it all off by then

Therefore how has it become relevant?

Secondly I don’t think your lack of credit usage would be enough for you to be refused a mortgage, when you’re also supplying a £150k deposit. By doing that, your monthly payments/overall mortgage is lower. So although you have limited credit history, what you are asking for on credit is also reduced so presumably the “bar” isn’t as high

Tenants in common rather than a joint mortgage means it wouldn’t really matter how each half is funded, surely?

"I think what I’m going to do if I can’t be a joint owner of the property, is focus on improving my credit score over the next 6 months and take it from there"

That's a really good idea. Maybe this house isn't the one for you. There will be other houses. There's no need to rush into this one without having everything lined up.

Who is telling you that because of a ccj ( which wouldn’t show on your credit file if it happened in 2014
ccj stays on your credit file for six years

if you “gift “ your partner 150k I don’t think you could do a deed of trust because a gift is exactly that a gift and mortgage companies don’t like gifts where the money may need to be paid back

you have to sign to say it’s a gift and not a loan

My sons partner has practically no credit score
& he started his new job only a few months before they applied for the mortgage he couldn’t give 3 months wage slips

but my son was putting down 100k deposit and they did a deed of trust so that my sons protected his money should they split

but they are both on the mortgage / deeds

So I’ve done 2 credit checkers and the CCJ still shows? Does anyone know why this could be?

I’d suggest checking the info you’ve been given. I believe it’s not true about the administration of mortgage. You can have a debt in a sole name but ownership in joint names. I know as I’ve had one. (Noted the mortgage was for less than 50% of the value of the property and both parties married to each other) Independent legal advice is needed and some extra paperwork but it is possible. Find a better mortgage advisor.

Also given you are unmarried then you need a financial contract in place to protect your assets (especially your 150k deposit). I’d be very uncomfortable with handing over that amount to anyone without solid confirmation you won’t end up loosing it.

You say you had it in 2014
but was that when you defaulted
generally on credit file it will tell you when the ccj will know longer show on your file

also who is telling you that you can’t go on thr deeds and to give your 150k to your boyfriend

it’s not your boyfriend telling you - is it

Contact the company who gave you the ccj and ask them to update their records. You can also dispute the ccj on your credit report and the credit report provider will contact the company. The downside of disputing via the credit report provider is that only your credit report through them will be updated. Nowhere else. Whereas disputing via the company will get your report updated everywhere

You probably need to look into it. If it was paid off in 2014, it shouldn't still show.

Have you had another?

My guts would also tell me this isn't a good idea.

This.

Please don't do it.

If you have a good income, stay unmarried. See a broker for a joint mortgage and contribute an equal amount of deposit. Keep the rest back in your own savings. Paying in the full amount as joint tenants in common or getting married means he has full access to that £150k and you don’t seem to want that.

Divorce doesn't mean everything would get split 50:50. The courts would likely agree that your deposit should be returned to you, especially because as you say, your DP earns significantly more.