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Original poster

Mortgage if partner moves in

34 replies

mortgagequestion1 · 22/02/2018 18:43

Hello, not too sure where to put this but just after some advice please.

Have lived in my property for 2 years and have a repayment mortgage. The internet rate is set for 5 years so ends at the end of 2020.

My boyfriend and I are in talks of moving in together this year. When he moves in I will lose my tax credits etc but his income will make up for this.

When it comes to re negotiation the interest/mortgage in 2020, what checks will my mortgage company likely do? My credit rating will be fine but I earn less now then when I took the mortgage out (due to going to term time only work to fit around kids as a single mum now) but the repayments are very affordable for me. Will they want to look at what I ear because if they do and take that in account they might say they won't lend as much? I am happy to put my dp on the mortgage as he will be paying towards it but I'm a bit confused at the whole process.

Any advice would be gratefully received. Smile

OP posts:
Original poster
mortgagequestion1 · 22/02/2018 18:44

Interest rate not internet! Stupid predictive text!

OP posts:
peanutbutter310 · 22/02/2018 19:02

We recently changed mortgage provider and had to go through all the same affordability checks as with the initial mortgage. I'm not sure if they do it if you just get a new deal with the same supplier.

We looked into adding DH to the deed at the same time, but it was going to be costly in stamp duty and legal fees, so decided against it for now.

Original poster
mortgagequestion1 · 22/02/2018 19:15

Oh how did stamp duty come into it?

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AntiHop · 22/02/2018 19:20

If you stay with the same mortgage provider and do a product transfer. They don't do affordability checks for that. I don't know if you could add dp if you do a product transfer though.

greendale17 · 22/02/2018 19:36

If you stay with the same mortgage provider and do a product transfer. They don't do affordability checks for that.

^That is not true. They still run an affordability check- I recently went through this. You need to speak to your mortgage company.

Original poster
mortgagequestion1 · 22/02/2018 19:38

It's so complicated. The mortgage repayments are nothing compared to renting (my partner currently pays £700 pm for a flat yet all these affordability checks are ridiculous aren't they. All I want to do is live my partner and between us will be £700 pm better off without him paying his rent every month yet a bank could well turn around and say we can't afford the mortgage Hmm It's bizarre!

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Wilma55 · 22/02/2018 19:40

You are supposed to tell/ask the mortgage proliver if someone moves in and the insurer.

Original poster
mortgagequestion1 · 22/02/2018 19:43

We haven't actually got as far as him moving in yet but when the time come I will. Although I lived with my ex for well over a decade and I don't think he ever told his mortgage provider that I lived there, even after we got married Sad

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peanutbutter310 · 22/02/2018 19:45

@mortgagequestion1 I think it was that stamp duty is paid on the portion of the property value you are transferring. But only if it's over a certain amount. Something like that.

In our case, I'd just paid the full stamp duty two years previously, and was not at all keen to pay half of it over again!!

Original poster
mortgagequestion1 · 22/02/2018 19:47

Would it make a difference that my dp would technically be classed as a first time buyer since he's coming from rented accommodation?

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peanutbutter310 · 22/02/2018 19:53

For the stamp duty? I don't think so as my DH was a first time buyer as well.

I've just checked the email I got from my solicitor at the time, and it applies for 'amounts over £125k'.

Original poster
mortgagequestion1 · 22/02/2018 20:02

What a palaver! I've paid the stamp duty ffs and if dp and I had both bought the house at the time the stamp duty would have been exactly the same. Talk about money for old rope!

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HelloHouse · 22/02/2018 20:20

You don't have to pay stamp duty to take out a joint mortgage.

Don't forget by the time 2020 comes around you will have paid off a chunk of your mortgage, your home will probably have gone up in value which means you will have more equity in the house.

The more equity you have in a house, the less strict the banks are on checking your affordability.

Having your DP with you and possibly going on the mortgage - i would be very surprised if they said they wouldn't lend to you. I would however be cautious about doing this unless you were married as if he was on the mortgage and you split up he would be entitled to half the equity.

I don't think you have anything to worry about now though - just enjoy this exciting time Thanks

Bluelady · 22/02/2018 20:25

First time buyers have been exempt from stamp duty since November.

Bitofeverything · 22/02/2018 20:26

I renewed my mortgage last month and had to send through one month’s pay check. I think that was less than when I first took it out - might have been three months then? - but was still a check

Original poster
mortgagequestion1 · 22/02/2018 20:26

Thank you. I bought the house in January 2016 for £250,000 and in September 2017 it was valued by 2 different estate agents at £275,000. I put in £150,000 to buy the property and it's mortgaged at £100,000 it was so in jan 2016.

It just worries me because I earn less now than when the mortgage was taken out and if dp moves in will earn even less (tax credits.) Just trying to put my mind at ease I suppose.

OP posts:
Waterdropsdown · 22/02/2018 20:28

We remortgaged recently stayed with same provider and absolutely did not have to provide any information such as salaries. We just paid the fee and started on the new one.

Original poster
mortgagequestion1 · 22/02/2018 20:29

I'm with Halifax if that's useful 😊

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Bitofeverything · 22/02/2018 20:31

You could also extend the mortgage term? As in if it started at 25 years, it will be down to 20 years by 2020. But you could extend it back to 25 years then (you pay more interest but also lower amounts in meantime)

HelloHouse · 22/02/2018 20:36
Shock You owe less than 50% of the value... really do not worry at all!
GardenGeek · 22/02/2018 20:37

This reply has been deleted

Message withdrawn at poster's request.

Candlelights · 22/02/2018 20:43

Be aware that if you put your DP on the mortgage he'll have a claim on the house if you were to split up. I'd try and keep it all in your own name if they let you.

I've certainly changed mortgage products without having to provide any info on earnings etc. I don't think it's in a bank's interest to refuse you a mortgage once you're already there and owe them lots of money. They're more likely just to convert your mortgage to one with a higher interest rate, unless you ask for a better deal or sign up to another fixed rate deal

Original poster
mortgagequestion1 · 22/02/2018 20:49

Tbh I wouldn't be putting him on the deeds until we were married. He would basically be "doing the house up" as that's his trade so it's all win win.

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WhatWouldTheDoctorDo · 22/02/2018 20:56

OP, I'd echo what others say and don't rush to put him on the deeds. What if things don't work out and he owns a share of your home? You've effective got a £150k asset which should have increased by 2020, don't give half of it away. 2020 is a fair amount of time away really, why not re-evaluate how things are at the end of next year?

Instead of him contributing towards the mortgage, can you afford to share your living costs and he could use what he's been paying in rent to build up a fund to to reduce the mortgage if you do make a joint mortgage application or get married etc.?

Original poster
mortgagequestion1 · 22/02/2018 21:00

It would be tricky tbh because once he moved in Tax Credits would stop so it would be very tight indeed if I still had to pay mortgage and half the bills. It's a rubbish situation tbh and I wish there was another way Sad

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