# Mortgage advice required



## jimboxl (Dec 11, 2008)

Good evening, I am in the process of trying to buy the matrimonial home on my own, however due to my earnings I won't be able to get a mortgage which allows me to pay my estranged wife her half of the equity from the property. One of the options I have is to put my Fathers name on the mortgage as he owns his own house outright.
My question is, what risks are there for my Father and how much paperwork needs to be done(Dad is abysmally poor at form filling?)
For the time being I will need an interest only mortgage which I am not happy about, however I like the house we are in and it will be familiar for my Sons when they visit me. As it stands it will be cheaper for me to have an interest only mortgage than it would be to rent a house.
Any help/hints/advice welcome.
James.


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## DiscoDriver (Oct 27, 2009)

If your father either guarantees your mortgage application or, alternatively, takes out his own mortgage against his property, the bank will in each case seek to secure the mortgage against the value of his property. He then becomes soley liable for the debt (if he takes it out on his property) or jointly and severally liable with you (if he guarantees your mortgage). This means in the event of non-repayment/arrears building up it will likely be him the bank chases. From his point of view, it's very risky.

Another complication if he takes out his own mortgage against his own property, gives you the money and then you repay him is that it might have tax implications for him (as I presume you will also be funding the interest which he will need to pay) which will count as income for him on his tax return.


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