1st time buyer- partner poor credit, mat leave from September

[mummysept22]

Hi there
Just wondering if anyone can help. I am in a position to buy my first home. Unfortunately my partner still has poor credit so I will be applying in my name only. I earn 60k a year so can get a decent mortgage. I have a few issues:

1. We split our current bills, but they all come out of my partners account, my share goes into savings.
2. My partner will sign to say he has no financial hold over the house and will pay me rent (don't know the correct terminology apologies!) but I read somewhere mortgage brokers do not like people living in the house if they are not on the mortgage- is this true?
3. Once the mortgage has gone through, will they do any further checks on me? Obviously when I am on Mat leave I will not afford the monthly repayments but my partner can cover all the bills (he also earns a good salary of 55k).
4. I am due ~40k payout in august which will form a large chunk of my deposit. I have money saved in addition to that. I don't know whether to borrow money from FIL before that to get the ball rolling sooner or wait until I have the money?

TIA for advice! X

You’re probably going to want a mortgage broker. Residential mortgages won’t allow someone to be paying rent; for example, because of the legal rights that creates. You’d be better to just declare him as living there, but not on the mortgage. It’s fine for people to live there that aren’t on the mortgage; he just won’t be able to be on the deeds.

If you borrow money from FIL, he’ll have to prove where it came from, and go through the money laundering checks. He’ll also have to sign to say it’s a gift and not to be repaid; or they’ll count the £40k as a loan and reduce it from what you’re able to borrow.

What do you mean by “gone through”? If you’ve moved in, no. If it’s been approved but you haven’t completed, some mortgages are randomly spot checked before the final payout. There’s no way of knowing if yours would be, really. Most of the time it just involves sending new payslips, etc.

www.moneysavingexpert.com/family/money-help/

Put this in the property forum and you'll get really good advice. You'll need to get some legal advice here because of the complicated financial arrangement.

I think, but you'll need to check, that if your partner pays the mortgage then he will have a claim on the house. He needs to pay his share of the bills only but again you need to check this.

Open a joint account where all bills are paid out of but still keep your own accounts as well. In your shoes, I'd delay buying for a year until you return to work so you're in a better financial position. Put the £40k in a remium bonds account so it's locked away and can't be wasted. Encourage your partner to improve his credit rating over next year.

I reckon prices will drop a bit over the next year so prepare to buy when you return from maternity.

You will be hard pushed to buy a house and have completed before baby arrives.
You will need to show proof of funds (deposit and mortgage in principle) as soon as an offer is accepted. Is the 40k yours, and availabile in Aug, or are you hoping to receive it in August?

which guide to buying a property

We used London and Country (L&C) brokers for our mortgage. They're always recommended on the mnet property forum which is why I went with them. The brokerage advice is free and you only pay mortgage fixing fees if required.

www.landc.co.uk/

I bought my first home in my sole name although my now husband was also moving in at the same time without issue. After we married I bought our second home in my sole name and not all lenders would lend to me but most would.

I also tried using a broker the second time around and they gave me rubbish advice. My sister's own lender was offering a lower rate of interest so I just went by best buy tables.

I believe you have to tell the mortgage company if you are aware of any upcoming changes in your income - which you are.

I think this is going to be very complicated.

You might be better waiting till you are back at work on full time wages again.

I don't know whether to borrow money from FIL before that to get the ball rolling sooner

I wouldn't do this. I wouldn't do anything that could give your partner or his family any type of claim on your home, legally or emotionally.

Absolutely do not borrow money from anyone as that will make things complicated if you split.

I hate to say it but as you're not married you have to protect your financial and emotional interests first. Make a will when the baby is born and name them as your sole beneficiary. This way should something happen to you then your child's inheritance is secure.

www.citizensadvice.org.uk/family/living-together-marriage-and-civil-partnership/living-together-and-marriage-legal-differences

Thanks for all the advice everyone!!
I will have at least an extra 40k in August following a lengthy tribunal process which I have just won. The remedy hearing is in July. It could be more but at least 35-40k.

I wanted to get it done now as I won't go back full time after Mat leave so won't be able to get a mortgage as high as I can now! Otherwise it would be easier to wait I agree. I don't think my partners credit will be good enough in a year to join me on the mortgage. He is paying down his debts but he is in quite a mess - this is a sore subject but another topic entirely! He has got his act together now though and is putting things right but it will take time.

I don't want any joint accounts as I don't want to be financially linked with him until his credit has improved.

OK then the mortgage payment and house related bills must come out of your account. Otherwise he could have a claim on your house later on, to avoid this he should pay you his share of the bills.