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Thomas
Thomas, Lawyer
Category: UK Property Law
Satisfied Customers: 7600
Experience:  BA (Hons), PgDip, Practising Solicitor
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My brother has purchased a house with mortgage about 5 years

Customer Question

my brother has purchased a house with mortgage about 5 years ago in the UK. he doesn't live in the UK now, nor has any income in the UK also we are not British citizens. up until now, i have been paying for his mortgage which has been on INTEREST ONLY
terms with the bank. now we have decided to change this to REPAYMENT terms and bank have asked for proof of income! i was wondering now if he could give some sort of document approved by UK embassy in his country that i could speak to the bank instead of him,
and also to use my income to change his mortgage term from interest only to repayment. many thanks, ***** ***** look forward to hearing from you,
Submitted: 1 year ago.
Category: UK Property Law
Expert:  Thomas replied 1 year ago.

Hi,

Thanks for your question.

I’m afraid that the lender is unlikely to accept a Power of Attorney for the purpose of a full mortgage application, which is effectively what it is. A power of attorney allows a person to give authority legally to another person for the purpose of executing documents/contracts.

However, you can ask the lender if this is acceptable but it probably won’t be.

This means that you will have to ask the lender whether they will accept your brother as the applicant even though he is based in another country and presumably receiving foreign income. They may or may not accept this. If they do then he will have to instruct a UK based solicitor to act on his behalf and the solicitor will probably require that he attends a notary in his home country in order to notarise documents/proof of identity.

If this is not acceptable, then the other option would be for you to apply for the mortgage so that you can have the property transferred in to your name. You can then concurrently execute a declaration of trust which states that although you are legal registered owner, your brother has a 99% interest in the equity of the property. This may be acceptable to your brother.

If you wish for me to provide you with further guidance on any question you may have in the future then please submit a further question to the board requesting me either by my profile or by marking your question. “FAO Tom”.

Kind regards,

Tom

Expert:  Thomas replied 1 year ago.

Hi

Is there any further information you require?

I just want to ensure that you are satisfied, so please let me know if you have any further queries on the information I have provided. If you have no further questions then please do leave feedback.

Kind regards,

Tom