My partner currently has a mortgage in the UK and has done for a good few years. We are now looking to move in London and my parents think I should go on the mortgage with him which I can afford. The only issue is that I am a contractor in a professional role with a steady market of contract roles however I dont think any mortgage company would give me a joint mortgage because I dont have a 'steady' permanent income (which is only true in theory as I have had no problems going from one contract to another and earn pretty well). My partners current mortgage company said that they would probably look at me if I was a self employed plumber or electrician as there is always work! A solution may be that my father has said that he would be a 'guarentor' for me and would accept liability to pay the mortgage if I defaulted. Does anyone know if any mortgage companies would do this and allow the 2nd person to have a guarentor but be named as the mortgage? Help appreciated! Thanks!
I'm not 100% certain - but I believe UK mortgages are very alike to Australian mortgages (and they're both different to US mortgages again).
Usually if a parent wants to be guarantor for a family member, the bank will look at two options:
The first option is servicing: if your partner needs an income boost so that the loan-servicing levels are acceptable, then the guarantor shouldn't need to be named on the mortgage - only someone the bank hold accountable if things go wrong.
Second option is equity (security): if the bank feel that your deposit/fees aren't covered by the amount of down-payment you're offering, then they may request a portion of your father's equity to hold as security against the loan.
This is something you need to speak to your bank lender about. Ask LOTS of questions. If you get answers written in "bankese", then keep asking until you get the answers in English
