One name on mortgage- two names on deeds??

My daughter & her boyfriend are in the process of looking to buy a house.
She has mortgage approval for 200k in her name only. He is not working at the moment.
They will also be putting approx. 50k each towards the house.
Both first time buyers. From a legal & tax point of view what are their options re names on deeds and protecting each of their investments.
Obviously they will be going to a solicitor but are looking for some pointers first.

Normally only works other way around, i.e. 2 names on mortgage, one on deeds, as otherwise she would be putting him on the deeds of a house that is not fully hers as in the bank has a mortgage over it.

Not sure of tax position but imagine he is seen as giving her a gift of his deposit money and gift tax payable. Not sure how this could be dealt with, this has the potential to be very messy down the road should they split up, solicitor is definitely best place to start.

I think the application will be treated as her sole applicaiton (don't think the Bank will consider him on the mortgage). If he isn't on the mortgage then he can't also be on the deeds. A good solicitor will confirm the legal position.

Ask solicitor first before bank, as because he is unemployed bank may consider him a dependent of hers and assess her income on that basis, not saying that is wrong as he may well be a dependent if he will lose a social welfare payment when they move in, however it could decrease the amount she can borrow.

Mth, did you get any feedback from a solicitor with advice on this issue? Thanks

I think one of the conditions in a Mortgage sanction is that the title to the property must be in the same name(s) as the loan sanction. If it is decided to have the property registered in joint names a fresh sanction should be obtained to reflect this position.

I'm in the exact same position. About to close (tomorrow, fingers crossed). My partner's name will be on the mortgage and the deeds and we'll sign a co-ownership agreement which our solicitor will keep.

Once our fortunes change and we're both back working, getting married will be a simple way to sort out any legal ownership conundrums.

Good luck!

Leonmahon, did the mortgage co. allow him to be on the mortgage despite not being employed? What exactly is a co-ownership agreement?

With most lending institutions there is no difficulty with 2 people on mortgage, one on deeds, cant be done other way around though.

There is also no problem putting someone who is unemployed on the mortgage, the problem that arises is that they are then considered a dependent so can affect amount borrowed, if the income earner is earning enough for both and mortgage then no problem.

Society said:

Leonmahon, did the mortgage co. allow him to be on the mortgage despite not being employed? What exactly is a co-ownership agreement?

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The unemployed half is not on the mortgage, the employed half is. The co-ownership agreement stipulates what should happen to the property in case of break-up or death.

One should not lose sight of the very basic fact that if you are "on" the mortgage you are fully liable for the repayment of the loan.

If one person is on contract and the other permanent, will the mortgagor allow the contract person's name on the mortgage?

they will allow it on it but may not take the non permanent income into account.