Joint Mortgage/Further Education Query

[rdfcpete]

I know some of you will have experience of this so appreciate any advice as obviously it's a substantial and important life subject 

If, to say hypothetically as first time buyers currently looking for first property, that I had a joint mortgage with the girlfriend and in a years’ time the girlfriend decides to go back to further education (Full time Uni) to advance her career with qualifications on say a 3 year course, with student loan etc., and we're say 9 months into our mortgage repayments- what are the direct implications of that for us from the lender?

Of course we'd tell the bank/building society because the initial lending is based on our full time net incomes at the moment, as well as not to risk concealing crucial information that could risk mortgage fraud.

I appreciate there's likely to be one but what would be the immediate impact, given that because it's not a known entity or decision that so far we've both submitted that we don't have student loans (both having neither been to university to date) and while the repayments are made won't have one either, given the original 'student-free' circumstances at the time of taking out the mortgage?

Presumably an interest & capital Joint-mortgage won't stop people advancing their careers or gaining further qualifications and where income drops, keen to be in the know on what the 'done-thing' is, here.

Thanks.

[rich83]

I dont see that it would matter.

Take this scenario....

Both myself and my wife have a combined income of £120k.... we prove to the lenders that that has been our income for the last 3 years or what ever they request.

Mortgage is accepted and we move into our new house.

6 months in, we both get made redundant.

So long as the mortgage is paid I cant see the lender give too much of a f*ck about it.

Its a change of circumstance.

[prp74]

I dont see that it would matter.

Take this scenario....

Both myself and my wife have a combined income of £120k.... we prove to the lenders that that has been our income for the last 3 years or what ever they request.

Mortgage is accepted and we move into our new house.

6 months in, we both get made redundant.

So long as the mortgage is paid I cant see the lender give too much of a f*ck about it.

Its a change of circumstance.

As above, things do change, so this wont affect your mortgage, as payments are made. No need to inform them unless you have problems paying your monthly payments. Some lenders also have payment breaks for people who are traveling, or maybe going back to full time education.

[grey golfster]

Generally agree with above posts.

1. Agree mortgage and arrange. Be Open and honest. Get written  confirmation of offer terms.
2. Buy house flat and get on with life....
3. Life changes. Borrowers will have no interest as long as mortgage is paid. By someone!

BEWARE
If it all goes t1ts up...
Do not expect any help from DSS with mortgage etc, despite all the bollox you see in media, you'll be out, house sold by bank at bargain prices, you living in bnb and no more mortgages for you!
Also beware these historically low interest rates...as an old fart, i remember paying back at 15%. Could you do that?
Rates currently look set to start increasing... perhaps a 5 yr fix?

[FJ1000]

Rates likely to stay low for about a year yet, and then very gradually creeping up to 3-Ish %. That's what the interest rate futures markets imply. The risk to that is BREXIT, and inflation getting out of control.

Fixing is a good idea - rates aren't getting any cheaper unless there's a big economic shock that requires BofE stimulus.

Make sure you've done your sums and can definitely afford it if your girlfriend goes into higher education.


Sent from my iPhone using Tapatalk

[pudding]

Yep, when I broke up with my missus some years ago, she moved out and I stayed in the house and covered the bills and mortgage on my own.  The mortgage rate was 9% back then......because recession.  Mortgages are tiny now!

Anyway, I rang the bank as a general enquiry about signing the mortgage into my name.  They then handed me a reel of their finest luxury red tape and said I couldn't afford to buy it on my own....despite paying it on my onw for 3 years already!  So f'ck em.  I just stayed there and carried on paying.

As above..... the sh*t is going to hit the fan again.  Lessons were not learned from the crash of 2008.  Personal debt is at an all time high and the Bank of England CEO has warned the government.  What are the government doing about it? Nothing.  What did Labour do it about it in 2008? Nothing.  You're on your own kids.  Read the small print 10 times and just keep the payments up. Budget for the base rates to go up soon. 

[grey golfster]

Generally agree with above posts.

1. Agree mortgage and arrange. Be Open and honest. Get written  confirmation of offer terms.
2. Buy house flat and get on with life....
3. Life changes. Borrowers will have no interest as long as mortgage is paid. By someone!

BEWARE
If it all goes t1ts up...
Do not expect any help from DSS with mortgage etc, despite all the bollox you see in media, you'll be out, house sold by bank at bargain prices, you living in bnb and no more mortgages for you!
Also beware these historically low interest rates...as an old fart, i remember paying back at 15%. Could you do that?
Rates currently look set to start increasing... perhaps a 5 yr fix?

Sorry, obviously I meant LENDERS.

[rdfcpete]

Thanks guys for all your reassurances and information from first hand experience, much appreciated from all 

Yes indeed as a couple of you said, it seems a 4 or 5 year fixed rate looks the way to go as things stand now, with another inevitable slump due very soon.
Making the repayments either way won't be a problem, she will still earn reasonable money but just not a fixed income that they would recognise as 'full time' or consistent enough - I just know that it would bring the lending amount down by £90k+ if I were to take her off as a registered name which raised the question in my mind & caused some anxiety, such is life   

Thanks again.

[lukemk5gti]

My two cents as I've literally just gone through the same scenario.

My gf and I bought our first house 2 months ago and I was told by the bank the following when I asked about taking a new job "you can do whatever you want after you draw down your mortgage, it's solely up to you to meet the repayment capacity by any means but don't take the new job or make any big decisions before that time".

I mentioned going for a second masters degree and all they said was "that stands to you on your mortgage approval".

Do be careful though, I will likely go back to college be it full or part time and for this reason I went for a 5 year fixed term. That means there's no fear of price hikes during my time in college and we can budget accordingly.

[grey golfster]

Second Lukem about the fixed.

One of the VERY few good things about being an old fart, is that my mortgage is long since paid off....however my kids have heeded similar advice (not just from me) to fix asap.