Advice on getting mortgage approval with brother

B

Betty10

Guest
Hi,

Any advice on someone going for mortgage approval with their brother? The reason is because the banks wont approve mortgage with couple as one is self employed and the other is not in a permanent job.

Some problems would be that both are first time buyers therefore brother would lose his ftb when he goes to buy a house in the future (no plans to buy for another 2-3 years)

What other implications would there be??And how would you go about changing names on mortgage when the other person was in a permanent job in future - would this be a case of remortgaging or could it be done thorugh solicitors????

Should also add that the brother wont have any interest in the property, wont be living there or paying mortgage, he is just going in to try and help getting the mortgage..The mortgage will be paid by couple....

Any advice would be great!!!!!

Thanks.. :)
 
So who will be on the mortgage?
Will it be the self employed person and his/her brother?

I take it that the person not in the permanent job will not be party to the purchase at all in a legal sense though they will be contributing to the mortgage?

If the brother is to join the mortgage "solely at the request of the lending institution for the purpose of providing additional security for the monies being advanced for the purchase" and if the following conditions are satisfied then the brother may not lose his FTB status


  • The transfer of the house is taken in the name of the first time buyer.
  • It is the intention of both the first time buyer and the other person that the other person is not to take a beneficial interest in the house.
  • It is not intended that the other person will be contributing to the repayment of the mortgage in the normal course
See here

[broken link removed]

The person in the non permanent employment contributing tp the mortgage has the most to lose here. I will leave it to the legal experts on here to explain the ins and out of this. He/she should get independent legal advice.

[broken link removed]
 
Thanks for your reply....Yeah the self employed person and brother would be going for the mortgage together..

However just to clear up something, this is not at the request of the bank. This is the only option to the couple as no bank will consider them as a joint application at present. Therefore to the bank it will just be a normal application....

Also in relation to your note about the biggest risk being for the other party as they will be paying mortgage but not on it....they will be getting legal advice on this ..... It is hoped that this will not be a long term arrangement , its just that it will prob take them about 2-3 years to get a perm teaching job....

This is just the last bit of hope for getting a mortgage in the near future.... :(
 
It is my personal belief, supported by posts on AAM, that this would be an ill-advised course of action for all three people. These forum have stories from people whose relationships, financial and working futures have been ruined by an unforeseen event scuppering their carefully-laid and well thought out workarounds for mortgage refusals.
 
is 2 years of renting together while saving and waiting for a permanent teaching job not an option? then the couple could apply for a mortgage together. The brother might not mind helping out now but if he does lose his first time buyer status he could be kicking himself down the line. Personally I'd wait the 2 years for permanent job, keep saving and then re-apply.
 
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