Couple -one borrower, one cash buyer - both on Mortgage?

Vega

Registered User
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65
Hi,

We are both first time buyers but my partner is a cash-buyer, I need a mortgage so I was just going to get a mortgage for about half the asking price (€510k) so say €250k mortgage up to maybe €275k (I was previously approved for €360k as a single applicant a couple of years ago but obviously the max amount has been declining, €290k was the max they would lend me about 6 months ago). The bank says that even if she is paying for her half in cash that she absolutely must be on the mortgage also – is this correct? She is obviously a bit confused why she has to be on the debt when it is not her debt and she is not servicing it. Is this normal? Why can’t I just get a mortgage for my half and she pays for her half? I would have thought he bank would be happy with the reduced risk as the LTV should now be below 50%, what is the risk to the bank?

I understand the bank will have the house as collateral on my loan but I would have thought I could just get a single mortgage for myself for my half of the house? Is this the only way?


We both have full-time jobs (I’m public sector, >10 years) and savings etc. (>50k each), no kids, first time buyers, it’s only for ourselves to live in, no other debt (apart from credit card paid off in full every month), ICB is clean for both of us, there are no other negative issues that we are aware of.

Only tried AIB so far as their <50% LTV rates are good (relative to other prices in Ireland, I understand we’re compensating the banks for their tracker products). Is this the only way or will any other bank let a single applicant get mortgage for half the house?

Thanks
 
The bank wants both of you on the mortgage because I presume both of you are going to be on the deeds. From a security point of view, half a house is near worthless to the bank. Your partner (and you) could just continue to live in the house if you defaulted and the bank would have a legal nightmare on their hands.
 
Vega;

I would think Mr Bank would have explained this ,given their professional status!

With you both on Mortgage/Deeds Mr Bank has you both 100% liable for the debt.

More importantly from Mr Banks view , should problems arise betwix you pair or problems arise in servicing mortgage ,Mr Bank does not have to get involved in who owns what share etc.

Should you stop paying and given that she has paid half and lives in home ,it would be difficult for Mr Bank to realize their security should you default , whereas with both names they avoid a potential mess.
 
My husband and I (along with my sister and her husband) bought a BTL property that had a side garden with full planning permission. My sister and her husband paid cash for the side garden part and my husband and I own the house (which we needed a mortgage for).

The owner would not sell them separately, so we bought it together in one transaction. Although the mortgage was for the house my sister and her husband had to be named on the mortgage. The bank (KBC) would not allow for 4 people to be named on the deeds and only two on the mortgage.

They said that once the title deeds were split and we solely owned the house, we could then re-apply for a mortgage with just the two of us.
 
Thanks for the replies, which make sense. No the bank did not explain this and when questioned was unable to explain and had to go check with their manager etc. and still hasn't provided a clear explanation, hence my question.

Thanks for clearing that up.
 
Thanks for the replies, which make sense. No the bank did not explain this and when questioned was unable to explain and had to go check with their manager etc. and still hasn't provided a clear explanation, hence my question.

Thanks for clearing that up.
..............

Hmn,
And we wonder how Banks got in trouble!
 
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