Getting a mortgage in one person's name only

DubLad69

Hi all,

We are in a bit of a sticky situation. We put a deposit on new build house and need to sign contracts ASAP. In order to sign contracts we are required to have a loan offer. We asked our bank for a loan offer and they refused (we had AIP) because there is major error on my credit report.

It will take a few weeks or months to fix, but will certainly be fixed before we actually want to buy the house.

Will a bank allow my partner to get a mortgage in her name only for this house, if we provide a gift letter stating that her parents will pay the other half? We would also tell them that she is buying alone now.

We wouldn't actually follow through with this mortgage, it is just a stop gap to allow us to sign the contracts while we fix the issue, so that we don't loose the house we love. We would then continue with our letter of offer with the original bank once the issue is sorted. The house won't be ready until next April, so any loan offer will expire anyway.

flanna01

Fix your problem and re-apply.

DubLad69

flanna01 wrote: »

Fix your problem and re-apply.

Yes that is what we will be doing. But we have been advised that it will take a while to fix the issue. And we need a loan offer now, otherwise the contracts will be rescinded. We were only given 21 days to sign, and it's longer than that already.

We will be getting professional advise next week, just wondering what people here thing now.

FromADistance

DubLad69 wrote: »

Yes that is what we will be doing. But we have been advised that it will take a while to fix the issue. And we need a loan offer now, otherwise the contracts will be rescinded. We were only given 21 days to sign, and it's longer than that already.

We will be getting professional advise next week, just wondering what people here thing now.

Has the other financial institution acknowledged that there's an error? Will they provide a letter to that effect? Personally, if an error, not of my making, occurred like the error described and was impacting as described, I'd be considering involving my solicitor.

DubLad69

FromADistance wrote: »

Has the other financial institution acknowledged that there's an error? Will they provide a letter to that effect? Personally, if an error, not of my making, occurred like the error described and was impacting as described, I'd be considering involving my solicitor.

It is the same error that I got them to fix around this time last year. It took weeks for them to accept responsibility, and weeks further to fix the credit report.

Now, the exact same things has appeared again. To make it worse, they will only deal with it by way of making a complaint, and they take their time to respond. I will have my solicitor look at it this time.

So they won't give anything in the next week or so that we need it. So are looking for a short term solution.

Q&A

You mention the term partner... If you're not married it is possible to get a mortgage in one person's name only. If you're married the only way they will issue a mortgage to one and not the other is if it were a buy to let.

FromADistance

DubLad69 wrote: »

It is the same error that I got them to fix around this time last year. It took weeks for them to accept responsibility, and weeks further to fix the credit report.

Now, the exact same things has appeared again. To make it worse, they will only deal with it by way of making a complaint, and they take their time to respond. I will have my solicitor look at it this time.

So they won't give anything in the next week or so that we need it. So are looking for a short term solution.

Fair enough. If you're married I don't think the bank will go with what you're proposing. Your name would need to be on the mortgage.

However, surely you can explain to the builder what has happened here, that it has happened before, was fixed and it will be fixed again. Are you sure that the builder won't accept an AIP?

Jim2007

DubLad69 wrote: »

Hi all,

We are in a bit of a sticky situation. We put a deposit on new build house and need to sign contracts ASAP. In order to sign contracts we are required to have a loan offer. We asked our bank for a loan offer and they refused (we had AIP) because there is major error on my credit report.

It will take a few weeks or months to fix, but will certainly be fixed before we actually want to buy the house.

Will a bank allow my partner to get a mortgage in her name only for this house, if we provide a gift letter stating that her parents will pay the other half? We would also tell them that she is buying alone now.

We wouldn't actually follow through with this mortgage, it is just a stop gap to allow us to sign the contracts while we fix the issue, so that we don't loose the house we love. We would then continue with our letter of offer with the original bank once the issue is sorted. The house won't be ready until next April, so any loan offer will expire anyway.

These games are never a good idea when trying to obtain finance, in their worst format they could lead a disgruntled part to make a criminal complaint.

Talk to your bank, explain the credit report situation and see if it will allow them to move on. Otherwise fix the problem and reapply.

newuser99999

DubLad69 wrote: »

It is the same error that I got them to fix around this time last year. It took weeks for them to accept responsibility, and weeks further to fix the credit report.

Now, the exact same things has appeared again. To make it worse, they will only deal with it by way of making a complaint, and they take their time to respond. I will have my solicitor look at it this time.

I would be getting on to the financial services ombudsman.

DubLad69

We are not married, and the builder unfortunately won't accept an AIP.

We don't really see how we are "playing games" to get finance. We are not giving any false information, or even accepting a loan that is offered.

If it wasn't for the fact that we would loose the house that we have been waiting a long time for, then we would have no issue waiting until its sorted.

We will have to reapply for the mortgage in 6 months anyway. Regardless of the situation.

macsauce

I'm surprised the builder is questioning the details of your finances but perhaps that's a sign of the times at the moment. I'm pretty sure the bank wont be interested in the letter from your / their parents. If you are certain that resolving this issue will get your loan offer for the amount you are requesting, then I would ask the bank to provide you with a loan offer letter in your partner's name only for the maximum that they will give. Then have your / their parents demonstrate to the builder that they have the cash to fund the balance of the purchase, stating that this will be gifted to you when required.

Be aware that if for any reason you end up not getting the mortgage, and you cant find another bank to lend to you, then you stand to lose out on your contract deposit.

JustAThought

I had a serious problem with my bank and after years of pussying around with middle level managers I was still being messed around with. I copied everything and sent it by registered post to the CEO. Problem got fixed and a lengthy apology ensued. Why not try that- assuming you have right on your side.

macsauce

Jim2007 wrote: »

These games are never a good idea when trying to obtain finance, in their worst format they could lead a disgruntled part to make a criminal complaint.

Talk to your bank, explain the credit report situation and see if it will allow them to move on. Otherwise fix the problem and reapply.

Which part of the OP's post is criminal? I would hardly call this a game. The OP is in a bind and is prepared to put his deposit at risk.