2 FTBs, 1 name on house

B

buzz55

Guest
Hi all,

I want to buy a house with my sister, using her only for her salary power to borrow. I want my name only on the deeds, and I will be making all the payments myself. I can't get enough of a mortgage by myself to buy where I want to buy. Question is this, if my sister then wants to go and purchase her own house in say, a years time, is her first time buyers status gone? What implications would it have for her when she goes looking for a mortgage of her own?
Thanks.
 
I don't think you can do what you're trying to do. You're both getting the mortgage. Therefore you're both on the deeds. Therefore she now loses her ftb status.

I'm not positive, but I don't think you can use someone elses salary to help you get a house without them being part owners afterwards.
 
I'm not sure either but I suspect that two people can be on the mortgage but only one on the deeds as outlined .
 
It is possible for 2 people to be on the mortgage but only one be on the deed. Some banks will accommodate it. However, they will probably require that the person going on the deed must meet a certain threshold of net disposable income. In the unlikely situation that your sister was to walk away and you were left with the mortgage repayments, you would need to be able to pay the mortgage on your own and have a sizable chuck of disposable income left. You'd need to check with your mortgage provider to see if your salary is sufficient for this.
My understanding is that if you sister is not on the deed (and didn't own before) she will still be a FTB when she goes to buy.
 
One option may be to ask you bank if you they are willing for your sister to go guarantor for mortgage. That way the bank has some extra protection but your sister does not lose her FTB status. It will also a lot easier for her to be released from the guarantee if and WHEN your income increases enough.
 
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