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Hi all, 

 

Me and my partner broke up 6 months ago and she kept the house. 

I’ve been renting since then and have just taken out a loan to refurnish the house as I’ve been making do with bits I’ve scrounged off friends and family. 

 

I’ve just been informed that my co tract is being made permanent at work so I can now apply for mortgages again, would I be able to use this loan as part of my deposit (Roughly 50% of the deposit) or is it a big no no? 

All thoughts appreciated 

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26 minutes ago, Dougy said:

I would not do it, all your doing is getting further in debt, pay off the loan and start to save. Nothing wrong with living off hand me downs till you can afford to buy what you want or new. 

 

Problem is, if he doesn't have the money for a deposit, he may stay in debt renting, paying someone else's mortgage for them. 

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1 minute ago, GingerCat said:

If he uses it as a deposit he's effectively consolidating the loan and paying the with the mortgage. Best asking for a settlement figure and clearing it. Then saving. 

Yes but without a deposit, he won't get a mortgage and if he has no way of raising one, due to paying rent he'll never own his own place, I'm not saying its a good idea but it'd depend on his personal circumstances. 

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The mortgage company/bank etc , will know that you're using borrowed money . This may well alter their decision about giving you a mortgage.

The best advice that I could give is , don't spend / waste money improving a rented property , you're just making someone else rich . Live a sparse life for a while , and save every single penny that you can ,and get out of a rented property, and into one that you will eventually own.

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15 minutes ago, GingerCat said:

If he's earning loads then why not. If not he will have to pay a loan and mortgage and the loan will be taken in to account when it comes to affordability. 

In reality its probably a no brainer. Only he will know. 

I can more than afford to pay a loan and the mortgage, what I can’t afford is loan, rent and savings... 

the rent on a house is £795 for something that suits my needs, I can buy something of a similar standard with a mortgage of £400-450 depending on the calculator I use. 
 

I’m awaiting an appointment with a mortgage advisor but also looking at other ways around this. 
 

I think I may end up buying a new car or bike etc. And then a family member gifting me a similar amount...
 

 

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2 hours ago, keeper96 said:

Hi all, 

 

Me and my partner broke up 6 months ago and she kept the house. 

I’ve been renting since then and have just taken out a loan to refurnish the house as I’ve been making do with bits I’ve scrounged off friends and family. 

 

I’ve just been informed that my co tract is being made permanent at work so I can now apply for mortgages again, would I be able to use this loan as part of my deposit (Roughly 50% of the deposit) or is it a big no no? 

All thoughts appreciated 

Do you own a share in this house ? Can she pay you out ? 
sorry if it’s a sore point but I feel to many blokes get the raw end of the deal .

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1 minute ago, team tractor said:

Do you own a share in this house ? Can she pay you out ? 
sorry if it’s a sore point but I feel to many blokes get the raw end of the deal .

Yeah I owned a share In the house, not a huge amount as we’d only been in 18 months and she paid the deposit through inheritance so all I could claim was my mortgage payments minus interest and bits and bobs like new carpets I paid for etc. All in all about £3.5k 

She was arguing saying I didn’t deserve anything back as if I’d been renting it would’ve cost me more in rent so I should be grateful for the cheap living for 18 months 😂

In the end I settled for £1.5k as I also wanted to keep things civil as it was looking like we may be able to resolve our issues once we lived separately but as soon as I’d signed the paperwork for £1.5k I never heard a thing again. 
 

lessons learned there!

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1 minute ago, keeper96 said:

Yeah I owned a share In the house, not a huge amount as we’d only been in 18 months and she paid the deposit through inheritance so all I could claim was my mortgage payments minus interest and bits and bobs like new carpets I paid for etc. All in all about £3.5k 

She was arguing saying I didn’t deserve anything back as if I’d been renting it would’ve cost me more in rent so I should be grateful for the cheap living for 18 months 😂

In the end I settled for £1.5k as I also wanted to keep things civil as it was looking like we may be able to resolve our issues once we lived separately but as soon as I’d signed the paperwork for £1.5k I never heard a thing again. 
 

lessons learned there!

Fair enough 😀. I hope you find somewhere soon 👍
im just going through a divorce and I was only married 6 months before she started an affair 🙈. Lesson learned big time 🤣🤣🤣🤣🤣.

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49 minutes ago, 12gauge82 said:

Problem is, if he doesn't have the money for a deposit, he may stay in debt renting, paying someone else's mortgage for them. 

One of the major problems with renting, it has its benefits for some i suppose. 

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19 minutes ago, keeper96 said:

I can more than afford to pay a loan and the mortgage, what I can’t afford is loan, rent and savings... 

the rent on a house is £795 for something that suits my needs, I can buy something of a similar standard with a mortgage of £400-450 depending on the calculator I use. 
 

I’m awaiting an appointment with a mortgage advisor but also looking at other ways around this. 
 

I think I may end up buying a new car or bike etc. And then a family member gifting me a similar amount...
 

 

I was in a similar situation quite a while ago, and couldn't get a mortgage and also a [an official] loan to top up my deposit. However, the mortgage lender did allow personal [family/company boss] loans to achieve the deposit total. Once settled in the new house I then applied for a [bank] loan to cover the personal loans as, like yourself, could easily afford the repayments.

Best to wait for your mortgage advisor appointment for more up to date info 😉

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33 minutes ago, keeper96 said:

Yeah I owned a share In the house, not a huge amount as we’d only been in 18 months and she paid the deposit through inheritance so all I could claim was my mortgage payments minus interest and bits and bobs like new carpets I paid for etc. All in all about £3.5k 

She was arguing saying I didn’t deserve anything back as if I’d been renting it would’ve cost me more in rent so I should be grateful for the cheap living for 18 months 😂

In the end I settled for £1.5k as I also wanted to keep things civil as it was looking like we may be able to resolve our issues once we lived separately but as soon as I’d signed the paperwork for £1.5k I never heard a thing again. 
 

lessons learned there!

I have been in this situation back about ten years ago. Did you have a % on the mortgage. You need to get the house valued and say you were 50/50 then you are owed half of the equity it has gained. No matter what your ex partner states, you're legally entitled to it. 

 

Although now you have signed for 1.5k... You may have done yourself over. 

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16 minutes ago, ShootingEgg said:

I have been in this situation back about ten years ago. Did you have a % on the mortgage. You need to get the house valued and say you were 50/50 then you are owed half of the equity it has gained. No matter what your ex partner states, you're legally entitled to it. 

 

Although now you have signed for 1.5k... You may have done yourself over. 

The house hadn’t gained anything, by the time I’d argued over valuations, possibility of extra solicitors and possibly court I probably would’ve came out with less than I already have. 
 

but I do agree I’ve done myself over 

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41 minutes ago, keeper96 said:

The house hadn’t gained anything, by the time I’d argued over valuations, possibility of extra solicitors and possibly court I probably would’ve came out with less than I already have. 
 

but I do agree I’ve done myself over 

I think you did the right thing. Clean break and not quibbling over pennies. 

The loan repayments and any other financial commitments (childcare, cars etc) will be considered as part of your “affordability” assessment. This is not a real world or sensible system and has bizarre rules. Do not buy the car or any furniture until after your mortgage paperwork is complete. If you can return any you need to do so. You need to be as solvent as possible when you submit your application and keep it that way until the deal is completed and house keys are yours. 

I started a new company, doing what I’d been doing professionally for a decade. When I went to port my mortgage to a cheaper house a couple of years later I couldn’t as the money I early self employed in a company less than three years old “didn’t count” even though it was only being ported and we had never missed a single payment, and had overpaid when we could. 

My wife’s part-time salary, whilst on maternity leave with out third son, with two sons continuing in part-time childcare (to avoid losing the places and disrupting their education/routine)  was used to calculate our maximum mortgageable value of £76,000. We had to use the capital from our house, the tiny mortgage and a cash help from family to buy a tiny bungalow in the right catchment area. Then take out a loan to convert it to a house. Then convert. Then remortgage to pay off the commercial loan and the family loan. The increase in value of the house should we us sitting on a tidy £80k profit when we can sell but it was very tight times for a few years. And we are still only slowly getting back closer to the shore. We have second hand furniture, no TV, and took our holiday in north wales - all to keep the mortgage company happy. But it did teach us to tighten our belts and live within our means. 

Long rambling rant over. I’ve just got back from work, had a beer and too sleepy to edit it down to be more succinct.

Good luck with your house and financial stability 👍

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If you can afford to pay the loan you can afford to save a deposit.

Pay the loan back, so long as you have furniture you can manage. 

You want better furniture keep a lookout on Facebook and gumtree etc.

We have literally binned perfectly good furniture because no one wanted it. My wife just wanted a change so out with the not so old in with the new.

Paying two loans isn't good.

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12 hours ago, WalkedUp said:

I started a new company, doing what I’d been doing professionally for a decade. When I went to port my mortgage to a cheaper house a couple of years later I couldn’t as the money I early self employed in a company less than three years old “didn’t count” even though it was only being ported and we had never missed a single payment, and had overpaid when we could. 

 

One of the problems of the 2008 crash - Self Certification went out the window - I can understand the reasoning as people were self certing to extreme multiples of income - but there are (like us) who were nowhere near. We are coming towards the end of a lock in (had to stay with the mortgage provider since pre 2008) and now I am on the books should be able to remortgage to something a bit better - we were lucky in that the provider we went with did not charge much on top of YBS mortgage rated (it is a YBS subsidiary). A lot of people were screwed by other providers

Edited by discobob
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An old shooting buddy of mine was on a self cert mortgage back in 2008, when his lock in offer period ended after the crash he couldn’t get a new mortgage for love nor money. He worked in a cash business.... 

Ended up having to sell up as the variable rate was eye watering. 

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5 hours ago, WalkedUp said:

An old shooting buddy of mine was on a self cert mortgage back in 2008, when his lock in offer period ended after the crash he couldn’t get a new mortgage for love nor money. He worked in a cash business.... 

Ended up having to sell up as the variable rate was eye watering. 

As I said, we were lucky with being with a reputable companies subsidiary - there were some right shady companies back then offering all sorts. I can remember being on the train to London and talking to a fella who worked in the City. I said that we had a LIBOR rate tracker mortgage but it was starting to pinch and the payments had doubled in a year and I was looking to ditch and switch and pay the charges. He said don't, in 6 months it will be different. He was right and the rate plummeted of a cliff. We have also been able to switch as long as we stayed within the same provider there was no need for application etc... but still at a slightly higher rate.

Since the rate plunged we have been making overpayments into it as well.

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23 hours ago, keeper96 said:

 it was looking like we may be able to resolve our issues once we lived separately but as soon as I’d signed the paperwork for £1.5k I never heard a thing again.

Sooner or later there comes a time in every man's life when he abruptly arrives at the realisation of what women are really like.

Don't faff about with the mortgage calculators on providers' websites, they are not accurate and are only showing you options from one provider.  Get yourself sat in that chair with a DECENT mortgage broker... ask around your friends for a recommendation for one.  I'd recommend mine.. presuming you don't live near Kettering I'm not sure how viable it would be to do remotely or on the phone but I know the guy's a diamond.  The best mortgage broker will be able to tap in to hundreds of different options from dozens of providers and will genuinely find you the best option that suits YOU.  For the measly few hundred quid involved they're worth their weight in gold!

Good luck mate ;)

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