affordable housing after signing joint morgage with my brother

adm

Ok this may be a dumb question but..
My brother wants me to co-sign a mortgage with him but
pay nothing.
He will also remove my name from the mortgage as soon as he can.
So if i dont apply for tax relief at source could i possibly be considered for affordable housing in future?
Does it even matter that i've paid nothing towards the property.
Presumably the banks will share details of mortgages - is this also true of dublin c council?
Is there anything i can do at all or am i screwed basically?

masterK

I would imagine that if you are co-signing the mortgage then your name will also have to appear on the deeds. If this is the case when you go to buy yourself you will not be a first time buyer meaning you'll have to pay stamp duty.

As for affordable housing, I doubt you could be considerer for it as it will appear in the councils eyes that you have already purchased a home (I assume the house he is buying is under the affordable housing scheme.)

Finally to have your name removed from the mortgage both you and your brother would have to employ solicitors.

Alternatively, You could just co-sign and then demand your half of the house once he gets the keys:D

aniascor

This will cost you a lot of money in the long run. Co-signing a mortgage on a house that you have no claim in is a big risk. If the house price drops, or interest rates increase so that your brother can't make his repayments, you will be considered to have defaulted on the loan also. and that will make it very difficult if not impossible for you to get a mortgage of your own in future.

All of this is assuming that the bank will allow you to co-sign on a mortgage if your name isn't on the house deeds. They may refuse on the grounds that it would be unfair to you because you will lose your FTB status.

Also, if your brother hasn't managed to remove your name from the mortgage by the time you want to buy, you won't be able to get a mortgage at all.

Get your own solicitor and get some independent advice before agreeing to anything.

~Leanne~

When you go to get your own house you wont be a first time buyer, as to put your name on a mortgage you will also be on deeds aswell.
Ive been through this myself before and it turned very messy! Certainly wouldnt advise anyone to do it!

adm

Thanks for the replies.
Confession to make - i've already done it a while back.
Was interested to know what you *would* have advised me.
I applied for affordable anyway and was approved(my bro's is not affordable) and am now in a lottery for apts but i know i'll be found out when it comes to getting a mortgage.such a damn shame really - i'll never afford my own place.he's in limerick and i'm in dublin and don't want to move and wouldn't live with him anyway.
The apts i'm in a lottery for would cost around 200k at affordable (cost price) - i saw on the web the *real* price for same apts was over 450k - it aint right!!

Anyway i was just trying to be a good brother so i was very naive about the whole thing.But damn it i'm not going to get pissed off about it.I bloody hate how crap like this can sour family relations.

Now excuse me while i go have a little cry :cool:

chump

~Leanne~ wrote:

When you go to get your own house you wont be a first time buyer, as to put your name on a mortgage you will also be on deeds aswell.
Ive been through this myself before and it turned very messy! Certainly wouldnt advise anyone to do it!

Must a name on the mortgage be on the deeds as well?

aniascor

adm wrote:

Confession to make - i've already done it a while back.

Um... what I meant to say originally was "I'm sure it will all be fine - good luck with it!":D

masterK

chump wrote:

Must a name on the mortgage be on the deeds as well?

It would be very unlikely that a bank would give a mortgage to somebody whose name didn't appear on the deeds, the property would be the banks guartantee. What would they do if you decided not to pay? They'd have nothing to repossess.

chump

masterK wrote:

It would be very unlikely that a bank would give a mortgage to somebody whose name didn't appear on the deeds, the property would be the banks guartantee. What would they do if you decided not to pay? They'd have nothing to repossess.

Very true.

aniascor

Adm - in your original post, you said that your brother planned to take your name off the mortgage asap. Has he done that yet? If not, there is no way you will get a new mortgage. (Unless you have lots of money in the bank!) Sorry.

adm

aniascor wrote:

Adm - in your original post, you said that your brother planned to take your name off the mortgage asap. Has he done that yet? If not, there is no way you will get a new mortgage. (Unless you have lots of money in the bank!) Sorry.

he hasn't done it yet but will begin the process next week.
Whats involved it doing that actually?
His mortgage is with EBS.
I'd hope it wouldn't be too difficult given that , obviously, both parties agree
and he's been paying the mortgage himself for a while.
I don't know if he's doing the 'rent a room scheme' but he is renting rooms - house is
near a Uni.
Perhaps there has been another post about it?
I'd be interested to know how difficult the process is
and the costs involved.

Regardless of the affordable issue i'm going to have my name removed.I realize i wont get another mortgage without doing it.
Thx

SarahMc

Its not as straight forward as it seems, he will have to fill out all the forms again, prove his income etc, it is effectively a remortgage. If EBS deem that he cannot afford the mortgage on his own, they may refuse. I don't think EBS charge for this.

loopyloulou

chump wrote:

Very true.

i got a mortgage with my brother (he is married with a house of his own) but i am the only one on the deeds. Only a couple of lenders do this but it just means that when i sell the house everything i make will be mine and i wont have to pay capital gains tax (which is what i wouldve had to pay if he hadve stayed on the deeds). Works fine for us..

chump

loopyloulou wrote:

i got a mortgage with my brother (he is married with a house of his own) but i am the only one on the deeds. Only a couple of lenders do this but it just means that when i sell the house everything i make will be mine and i wont have to pay capital gains tax (which is what i wouldve had to pay if he hadve stayed on the deeds). Works fine for us..

Yea found out it is possible and does happen, so I wasn't wrong afterall

tis called joint mortgage, sole title and to find lenders who do it you'd prob. need to deal with a broker.

honeymonster

I was chattin to a manager in BOI about a mortgage and she said my parents name could go on the mortgage and mine on the house so i could use my first time buyers grant so i'd say u'd b grand