Mortgage issue - please help

bucky08

problem with mortgage approval.. problem is i applied for mortgage on my own.. banks asked me would my partner be living with me i said yes to this, now the bank wants partner to sign a waiver to the house, partner won't sign this and bank said application needs waiver signed to complete has anyone ever heard of this before??

StillWaters

Yes, its common enough. Without this your partner acquires rights to the house which dilutes the Bank's security.

bucky08

so what do i do if partner won't sign waiver.. is their anyway round this ??

pwurple

bucky08 wrote: »

so what do i do if partner won't sign waiver.. is their anyway round this ??

Decision time for you. Cohabitation and becoming a defacto married couple gives more rights than you understand it seems.

You can split with partner, or you can involve them in the mortgage.

D3PO

pwurple wrote: »

Decision time for you. Cohabitation and becoming a defacto married couple gives more rights than you understand it seems.

You can split with partner, or you can involve them in the mortgage.

you tell him / her to sign it or you tell them they aren't living there. Id have serious reservations regarding your relationship if I was you.

There is no reason for your partner not to sign the waiver if their intention is to be in a committed lifelong relationship with you. Especially as the request is at the behest of the bank and not you.

MagicMarker

Sounds like the partner wants themselves a free house.

StillWaters

Is the plan that your partner will contribute to the mortgage or are they a full time homemaker? In which case I can see why they are reluctant to sign a waiver.

smcgiff

Did your partner say why they are reluctant?

Do they realise there will be no mortgage without the waiver?

bucky08

they will contribute to mortgage..

smcgiff

bucky08 wrote: »

they will contribute to mortgage..

In that case ye need to set it up as a joint mortgage. Then if ye default the bank get the house. I see where your partner is coming from now. Otherwise he is paying you rent.

bucky08

but need to get mortgage finalized as house will be gone soon is their a way to sort this with solicitor after mortgage is draw down

smcgiff

bucky08 wrote: »

but need to get mortgage finalized as house will be gone soon is their a way to sort this with solicitor after mortgage is draw down

you may have to remortgage the house I.e. go through all the legal work again.

What is your priority? Getting the house or not causing a rift between your (being quite reasonable) partner.

ButtersSuki

bucky08 wrote: »

but need to get mortgage finalized as house will be gone soon is their a way to sort this with solicitor after mortgage is draw down

In a word, no.

StillWaters

Sign the waiver and then get married? That would probably invalidate the waiver.
You need to talk to your solicitor and your partner needs to talk to a separate solicitor.

bucky08

partner won't sign waiver so thinking i probably go back to bank saying ill be living their alone what do you think of this option ??

the world wonders

bucky08 wrote: »

partner won't sign waiver so thinking i probably go back to bank saying ill be living their alone what do you think of this option ??

There's a word for this, it's called "fraud".

NinjaTruncs

bucky08 wrote: »

partner won't sign waiver so thinking i probably go back to bank saying ill be living their alone what do you think of this option ??

Do you think the bank will just say ok to that. I don't think it'll be that easy.

bucky08

i don't know how it works Thats why im here asking the question ...how would you advice with this so??

Moonbeam

We never got asked anything like that but we had a child already.

If it is a lobg term relationship then why do you not buy together it seems to be that or tell her to sign the waiver.
If she is contributing to the mortgage then she should buy the house with you,if she is paying you rent then she should sign the waiver.

miezekatze

If your partner will be contributing to the mortgage then why don't you just apply for a joint mortgage? I think you really only have two options here - you either buy the place by yourself, partner signs the waiver and will not contribute to the mortgage and will have no ownership, or you apply for a joint mortgage and both contribute and you own the place together. Have a good chat with your partner and see what would make the most sense for you.

StillWaters

bucky08 wrote: »

partner won't sign waiver so thinking i probably go back to bank saying ill be living their alone what do you think of this option ??

Don't do this. You cannot undisclose what you have told them. The Waiver is now a condition of the loan offer.

I am very surprised actually that your solicitor did not insist also that your partner waives all third party rights.

Could you apply jointly to this lender or another one, or are there credit /other house issues?

killers1

Bucky08, when you applied for the mortgage initially did you tick the box to say you were single or cohabiting? Were the bank made aware when you applied for the mortgage that you had a partner that you lived with? This is coming up now because your solicitor needs to complete the family home declaration. They ask you whether you are married, single or cohabiting etc. In the majority of cases the banks don't have an issue when the family home declaration is completed as cohabiting and one party is purchasing the property in their own name, however your solicitor will not be able to give you a guarantee that the bank will still issue the loan. From the banks point of view, if they now have to consider that your salary has to fund the cost of living for an additional adult that they hadn't previously factored into the equation it could effect their decision to lend you that amount. The whole area of cohabiting rules are relatively new & are causing new problems for both banks & solicitors in these type of situations. In reality the bank is no differently exposed to your situation than if a single person bought a house now, later met someone & moved their partner in at any stage down the road. Solicitors are coming across many cases where a non-owning cohabiting person acquires rights to the property and are successful in suing for a % of the property equity at a later date.

bucky08

i applied as a single person as i don't live with partner and i told bank this .. also i told bank i had a child and got phone call asking me where child and partner would live i said in the property then got told mortgage was granted and i needed to get partner to sign waiver problem is that it would take time to reapply for joint mortgage i think we would get joint mortgage no problem as amount im looking for is very small my only worry is time and will the auctioneer wait this extra time as its a builder selling and looking for €€ quick at a low price ya see ... Thats why i went for it on my own as i had mortgage approval on my own just 6 MONTHS AGO

killers1

bucky08 wrote: »

i applied as a single person as i don't live with partner and i told bank this .. also i told bank i had a child and got phone call asking me where child and partner would live i said in the property then got told mortgage was granted and i needed to get partner to sign waiver problem is that it would take time to reapply for joint mortgage i think we would get joint mortgage no problem as amount im looking for is very small my only worry is time and will the auctioneer wait this extra time as its a builder selling and looking for €€ quick at a low price ya see ... Thats why i went for it on my own as i had mortgage approval on my own just 6 MONTHS AGO

You need to discuss with your partner, he's not party to the mortgage therefore he's not liable for the debt so needs to sign the waiver if he plans to live there. Maybe his solicitor can explain it to him better, that he his waiving his rights to the property in the event of it being repossessed by the Bank. The bank don't care about any surplus equity in the property once their loan is repaid and you can have whatever legal agreement you want with him separately on how to split that. For example, if he's equally contributing to the mortgage you can agree that in the event that the property is sold the mortgage will be repaid and any sale profits are to shared equally between you. He can still sign the banks waiver and have a separate binding agreement with you to protect his half of the equity.

bucky08

would it just be better to get joint mortgage so or can www get it done by signing waiver and getting a solicitor to write up something giving us both rights to the house..

killers1

bucky08 wrote: »

would it just be better to get joint mortgage so or can www get it done by signing waiver and getting a solicitor to write up something giving us both rights to the house..

Joint mortgage is probably the cleanest way of doing it to satisfy all parties.. No reason why amending it to joint names would cause huge delays and you should be able to have a new loan offer issued within 2 weeks.

bucky08

thanks for advice with... important wondering should i explain this to the auctioneer as to what's happening??

killers1

bucky08 wrote: »

thanks for advice with... important wondering should i explain this to the auctioneer as to what's happening??

That depends on what stage you are at in the purchase. If contracts have been issued in your sole name they will need to be amended & you can instruct your solicitor to contact the vendors solicitor to arrange same. If contracts haven't issued yet you can contact the estate agent to tell them to ensure contracts are issued by the vendors solicitor in joint names.

bucky08

contracts have been issued in sole name also auctioneer has asked was it in sole name i told them it was... have meeting with solicitor on Monday and contract is with solicitor already ...

killers1

bucky08 wrote: »

contracts have been issued in sole name also auctioneer has asked was it in sole name i told them it was... have meeting with solicitor on Monday and contract is with solicitor already ...

When you meet your solicitor on Monday tell them you want contracts amended to joint names and they can contact the vendors solicitor to confirm the amendment. There's no need to involve the EA at this stage.. You'll need to get onto the Bank asap too as they will be looking for financial details from your partner and they'll need to sign application forms etc.

bucky08

do you think that their will be an issue doing this...

killers1

bucky08 wrote: »

do you think that their will be an issue doing this...

Having the contracts amended to joint names is no issue whatsoever. You'll have a better idea than me whether the bank will have an issue amending the mortgage to joint names.

bucky08

not sure if bank would have issue this what issues could arise ??

killers1

bucky08 wrote: »

not sure if bank would have issue this what issues could arise ??

The bank will only have an issue if your partner has a poor credit history, is heavily indebted or has insufficient income and as a result they need to factor in that part of your income will be used to support another adult dependent. If they are working & have a clean credit history you'll have no problems, as you said it was a small mortgage amount so I presume you qualified easily enough on your own.

bucky08

can't see problem their so thanks very much for taking time to reply with good advice killers... so ill talk with solicitor about this so ...

killers1

bucky08 wrote: »

can't see problem their so thanks very much for taking time to reply with good advice killers... so ill talk with solicitor about this so ...

No probs, best of luck!

Chris_5339762

Thats all well and good until ye break up 5+ years down the line and she makes a claim on half of the house as a common law partner.

bucky08

and i wouldn't mind that as partner is contributing to the mortgage