Strange mortgage question

barrier86

Hi all. Not sure if this is the correct sub forum.

Long story short. I’ve been gifted a really good sized amount of money, it’s sole purpose is to get my foot on the property ladder.

A house has just come up that I like the look of. The guide price is 295k. I have 200k from the gift and between my partner and myself we have about 20k savings. My question is can she take borrow the deficit in her own name while having my name on the deed of we get the house?

Reckon she would need about 100k

Her income is about 45k and she’s in full time employment with the same employer for a number of years.

We are not married yet - so would there be implications if if transferred the 200k to her in order to obtain a mortgage in her name.

Sarn

I imagine the bank would question where the 200k is coming from and would have a problem with someone else having an interest in the property that is not on the mortgage. Similar to parents having to sign gift declarations.

Former Coach

If title is in both names then the bank will insist on the mortgage being in joint names also.
If you transfer the €200K to her, she will become liable for Capital Acquisitions Tax if she proceeds to get a mortgage and register the property in her sole name.

pwurple

What are you trying to do here OP?

Game it so both of you can avail of 'first time buyer' status for mortgages?

barrier86

Thanks for the replies.

The funds are all above boards and I have proof of their origin.

I’m not trying to “game” anything. I was just wondering if this was an option to us.

Diemos

It's not possible if you want the house in both of your names.

My wife has a medical condition that causes our life insurance to be through the roof, but as my salary would be enough to draw down what is left of our mortgage, I inquired about switching our mortgage to my name only, but the bank would not entertain it, joint ownership means joint mortgage.

barrier86

Diemos wrote: »

It's not possible if you want the house in both of your names.

My wife has a medical condition that causes our life insurance to be through the roof, but as my salary would be enough to draw down what is left of our mortgage, I inquired about switching our mortgage to my name only, but the bank would not entertain it, joint ownership means joint mortgage.

Thank you for the reply. I appreciate it

dotsman

You should not, in any way, shape or form, gift her the money. Once you are married, you can move all the money want back and forth. However, prior to the marriage, she is nothing to you from a legal/tax perspective. Thus, she would have to hand over ~65,000 of the 200,000 to Revenue!

https://www.revenue.ie/en/gains-gifts-and-inheritance/cat-thresholds-rates-and-aggregation-rules/cat-thresholds.aspx

Henry Ford III

Diemos wrote: »

It's not possible if you want the house in both of your names.

My wife has a medical condition that causes our life insurance to be through the roof, but as my salary would be enough to draw down what is left of our mortgage, I inquired about switching our mortgage to my name only, but the bank would not entertain it, joint ownership means joint mortgage.

You should ask for a partial life assurance waiver. Give them a policy on your own life only for assignment.

Trish56

OP you need to contact a Solicitor as there are lots of implications here re gift tax or since you are not married if ye broke up and house is in joint names etc. You cannot have the deeds in joint names and only one on the mortgage however usually when there is a significant gift to one person usually the title is in the persons name who received the gift and the mortgage in joint names so it's important to contact a Solicitor first.

Are you working? Why do not want to have the mortgage in joint names?

barrier86

Trish56 wrote: »

OP you need to contact a Solicitor as there are lots of implications here re gift tax or since you are not married if ye broke up and house is in joint names etc. You cannot have the deeds in joint names and only one on the mortgage however usually when there is a significant gift to one person usually the title is in the persons name who received the gift and the mortgage in joint names so it's important to contact a Solicitor first.

Are you working? Why do not want to have the mortgage in joint names?

Thank you for the input.

I recently moved jobs and am currently on probation so I won’t be able to apply for a mortgage until I’m permanent.

The ideal house has come up for is but it looks like we might have to let this one pass and go again when I’m made permanent

pwurple

barrier86 wrote: »

Thank you for the input.

I recently moved jobs and am currently on probation so I won’t be able to apply for a mortgage until I’m permanent.

The ideal house has come up for is but it looks like we might have to let this one pass and go again when I’m made permanent

Why?

My husband is not employed, he is a stay at home dad... Our mortgage is in both our names, even though it was based on just my income.

You have the deposit, she has enough salary on her own to make up the 3.5xsalary rule. It;s a very low LTV ratio on the loan. Whats the issue you see here?


To be honest, you could probably each go down to the credit union and borrow 40 k each, and buy the house without a mortgage, change to a mortgage when you are permanent if you wanted to.

thomas anderson.

Bought my house in my name only, the wife has blip on her credit history.

She had to sign a document to waive her rights to any claim on it.

barrier86

Just to follow up on this. We’re meeting with a solicitor in the end of next week.

We are in a position to be given an interest free loan for the remainder from a family member, in regards to the tax implications from this it appears that we have an allowance that can be used to offset any tax liability in relation to the interest free loan.

Cheers for the replies to this thread. It was much appreciated and a bit of an eye opener too.

Good luck all.

Geuze

barrier86 wrote: »

Thank you for the input.

I recently moved jobs and am currently on probation so I won’t be able to apply for a mortgage until I’m permanent.

The ideal house has come up for is but it looks like we might have to let this one pass and go again when I’m made permanent

Two people can apply for a mortgage, even if one has little or no income.

Many SAHP have no income, and are on the mortgage.

This is common.

_Brian

I’d be going with the €220k, proof it’s sitting on deposit and make an offer.

You’d be surprised how the availability of money now will spike the interest of sellers. You might be a bit short but I think it’s worth a try.

Trish56

If your partner is earning 45k basic and you have no other short term loans or dependents and are currently saving or paying rent of approx. €650 per month you would qualify for 100k over 30 years on a joint mortgage with one income.

As previously stated it is important to contact a Solicitor as you need to protect your 200k input in the event of a breakup down the road as I've seen many instances of this over the years.

You can also make an offer and put a deposit on the property you are interested in as it is totally repayable if you change your mind. You are only committed once you sign the contracts and pay a 10% deposit and your Solicitor won't let you sign until you have a loan offer or all the finances are in place.

Best of luck.

barrier86 wrote: »

Thank you for the input.

I recently moved jobs and am currently on probation so I won’t be able to apply for a mortgage until I’m permanent.

The ideal house has come up for is but it looks like we might have to let this one pass and go again when I’m made permanent