loan approval

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garycrant

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hi guys new user here hope someone can help me out with a query i have. myself and myy partner have an opportunity to purchase a 2 bed apt for 280 k. my partner does not have the best credit rating in the world but my own is fine and i earn a fairly good salary. using online calculators i think i would be able to afford the mortgage alone but would prefer to get one with my partner. my question is because of my partners bad credit rating will this hamper our chances or would it be possible for bank to base it solely on me even though its a joint application.
 
What you need is a two on title, one on mortgage loan approval. Several banks can do this. - recently organised one with PTSB
 
Munsterdude said:
What you need is a two on title, one on mortgage loan approval. Several banks can do this. - recently organised one with PTSB
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Are you completely sure about that? Legally, a lender would virtually always require all parties on title to mortgage their interest. I'm not sure also that one person can mortgage the entire interest - only their own?

mf
 
mf1 said:
Are you completely sure about that? Legally, a lender would virtually always require all parties on title to mortgage their interest. I'm not sure also that one person can mortgage the entire interest - only their own?

mf
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The bank seem comfortable enough with it.......?
 
I wonder sometimes do they truly grasp what is being proposed!

I'd have some doubts about what would happen in the event of a repossession application in that scenario. Lawyers - always think the worst.

mf
 
mf1 said:
I wonder sometimes do they truly grasp what is being proposed!

I'd have some doubts about what would happen in the event of a repossession application in that scenario. Lawyers - always think the worst.

mf
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I understand what your saying, and the implications of this scenario. More importantly in my view, I wonder how often the mortgage holder has these implications explained to them?
 
I agree with you. Our function is to explain stuff but theres only so much you can do. My view is I put in writing - my ass is covered. If someone chooses not to read what I've said .........

mf
 
Munsterdude - are you sure that PTSB didn't agree to a case that was the other way round, i.e. two on mortgage but one on title?

If only garycrant is on the mortgage and he defaults, PTSB can't sell the house because his partner owns part of it and the partner has no agreement with PTSB. Their security is therefore almost worthless.
 
hey guiys i can see what ye are saying but we were gonna do things the opposite way, what i mean is have my partner on the mortgage and just my name on deed,s. this is basically becayse we are not together all that long and wanna see how things go. i am putting up all the deposit so have to safeguard this fact in case things dont work out but if they do will get both names on deeds.
 
Your partner's poor credit rating will adversely affect a joint mortgage application, even if you qualify for the requested amount on your own.

Besides if you do it that way, if you split up in the future, your partner might have a claim to the house without being on the deeds. If s/he has been named on and contributing to the mortgage that might possibly validate a possible claim to part ownership of the house. One of the solicitors that contribute to Askaboutmoney might be able to confirm or deny this?
 
Munsterdude said:
What you need is a two on title, one on mortgage loan approval. Several banks can do this. - recently organised one with PTSB
Click to expand...

Seems very unusual as its not in the lenders interests to do this. They won't hold full security over the property in the event of repayment defaults etc. Also in the interests of the registered owners one party could potentially remortgage without the knowledge of the other which would be worrying. Joint borrowers/sole title or joint borrowers/joint title are the standard forms of registration.
 
PM1234 said:
Seems very unusual as its not in the lenders interests to do this. They won't hold full security over the property in the event of repayment defaults etc. Also in the interests of the registered owners one party could potentially remortgage without the knowledge of the other which would be worrying. Joint borrowers/sole title or joint borrowers/joint title are the standard forms of registration.
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I understand what you are saying - and to be fair the case in question that I have organised is for different reasons - not credit rating related. The case hasnt closed yet, I am due to hear back from the clients solicitor as to how it is exactly finalised. I am assumig that the person not on the deeds has to sign some sort of agreement to cover offf the bank in case of default. Will add more when i hear exactly how it panned out
 
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