home loans

[adamadam]

I was wondering when appying for a home loan, if i am able to put someone else name down as well as mine when applying for the loan, to boost the amount of money i can borrow. Then when it is approved can you take them of the loan. Is this possible and is there a fee or cost involved.

[xrayspecs]

No. If their names are on the mortgage agreement, they are on there for the life of the loan. If you then default on repayment the lender will look to those named to recover the debt. They could in theory buy their way out but that would require a remortgage - for which you would face the same problem as in the original loan, that being your individual earnings are not enough to justify the size of the loan required.

[Buenchico]

As Xrayspecs has indicated, the loan application has to be based upon the total income of the people who are going to sign the loan agreement. Anyone signing such an agreement is accepting 'joint and several liability'. This means that if Fred & Mary both sign the form, and the loan repayments are not kept up, it will be entirely at the lender's discretion as to whether they pursue Fred or Mary (or both of them) through the courts to get their money back.

Chris