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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 :happy2:
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:
--- Quote from: rich83 on July 05, 2017, 07:12:24 pm ---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.
--- End quote ---
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.
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