helpin out a friend for mortgagae

hi my friend is getting a mortgage and he ask me wood i put his car in my name so he can it the mortgage so the bank thinks he has no loans i dont mind cause i trust him but how do we go about it thanks for ur help...

You would need to apply to the bank he has the car loan with to get it transferred into your name. Obviously they will do a credit check etc.

but...

as someone stuck with a loan i got for someone i also trusted at the time i would strongly advice against it. I'm not suggesting your friend will be a untrustworthy as my 'friend' but there is no way to know what the future holds. What if he loses his job or can't make the payments to you for some other reason. Where will that leave you?

Also .... it may not be a negative thing that your friend has a car loan because the bank will look at it as evidence of repayment history when considering his loan application.

This is assuming that he has been paying his installments on time/in full etc.

Lots of people have car loans .... and it doesn't stop them getting a mortgage. The only reason he'll be refused a mortgage is if he won't have the capacity to make the repayments.

what about his car insurance?

I'm sure there's a condition that the policy holder is the registered owner of the car?


i could be wrong!

Woodbine you are correct - you need to have an insurable interest in the car - i.e. OP friend will not be insured if car is not in his name!

PaddyBloggit said:

Lots of people have car loans .... and it doesn't stop them getting a mortgage. The only reason he'll be refused a mortgage is if he won't have the capacity to make the repayments.

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Exactly. He is trying to get a larger mortgage than he can afford. Complete madness in the current climate imho.