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Refused as joint mortgage, reapply as sole

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  • 23-05-2020 11:40pm
    #1
    unoplayer88
    Registered Users Posts: 1 ✭


    Hi everyone,

    My partner and I have just been refused a joint mortgage with KBC based on his earnings being inconstant (he is freelance and contracts are less promising due to Covid). I have owned a property for eight years which I recently sold and made a small profit on. We have been refused a KBC mortgage based on his freelance contracts over the next few months being cancelled. He would be putting in 25000 in savings into the property, and I myself have 90000 to put in. We are looking for a small enough mortgage and now that we have been refused we are thinking of applying for a smaller sole mortgage. What are the disadvantages of this and am I now allowed to apply straight away for a sole mortgage, despite the joint mortgage being refused?

    Thanks!


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    #2
    Dolbhad
    Registered Users Posts: 782 ✭✭✭Dolbhad


    unoplayer88 wrote: »
    Hi everyone,

    My partner and I have just been refused a joint mortgage with KBC based on his earnings being inconstant (he is freelance and contracts are less promising due to Covid). I have owned a property for eight years which I recently sold and made a small profit on. We have been refused a KBC mortgage based on his freelance contracts over the next few months being cancelled. He would be putting in 25000 in savings into the property, and I myself have 90000 to put in. We are looking for a small enough mortgage and now that we have been refused we are thinking of applying for a smaller sole mortgage. What are the disadvantages of this and am I now allowed to apply straight away for a sole mortgage, despite the joint mortgage being refused?

    Thanks!


    I presume when you mean partner, your not married. If you are married and you apply in your sole name, the bank will still went details of your spouse so the hurdle would still be there.

    If the mortgage is in your sole name, the house legally has to be registered in your sole name. This means if you stop paying the mortgage, there is no come back on your partner from the bank.

    However, your partner is putting money towards the deposit of a house that legally they will have no right to. The bank will require a deed of confirmation to be signed from your partner that the money they are providing is a gift and they waive any rights to the house in the event the bank repossess it.

    25k is a lot of money for something he has no right to if you split up. If I was your partner, I wouldn’t be buying the house with you in this situation unless you were married.


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    #3
    Cash_Q
    Registered Users Posts: 1,920 ✭✭✭Cash_Q


    Maybe approach a broker and see if they can do anything for you as joint applicants first. I know everything is up in the air these days but brokers often have relationships with particular banks and they can get around issues. We used a great broker at no cost to us, he arranged our insurance etc too. PM me if you'd like the name, I originally got their name from boards in 2017.


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