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  • FIRST POST
    • Stu_N_
    • By Stu_N_ 12th Mar 17, 6:53 AM
    • 187Posts
    • 106Thanks
    Stu_N_
    Affordability - sole vs. joint application
    • #1
    • 12th Mar 17, 6:53 AM
    Affordability - sole vs. joint application 12th Mar 17 at 6:53 AM
    Hi all,

    Having played around with 'Nationwide for intermediaries' (no, I'm not a broker), I have discovered that Nationwide will lend me more if I apply alone than if I apply with my wife. I would set her as 'homemaker' as she's starting a business and has very little income at this stage, and couldn't use it on an application anyway as she's not even got one year of accounts.

    Would it be legit to apply just as myself? My wife would still go on the deeds. Would I have to count her as a dependent as we've not declared any of her income and technically all costs for the both of us come out of my salary?

    Thanks!
Page 1
    • kingstreet
    • By kingstreet 12th Mar 17, 8:21 AM
    • 31,304 Posts
    • 16,715 Thanks
    kingstreet
    • #2
    • 12th Mar 17, 8:21 AM
    • #2
    • 12th Mar 17, 8:21 AM
    My wife would still go on the deeds
    Originally posted by Stu_N_
    No she wouldn't. That isn't possible.

    You will have issues with many lenders if she is contributing to the deposit as well (joint property sale, or funds in joint account).

    Some lenders don't reduce what you can borrow due to a non-working applicant. Get broker help.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • glosoli
    • By glosoli 12th Mar 17, 9:30 AM
    • 391 Posts
    • 227 Thanks
    glosoli
    • #3
    • 12th Mar 17, 9:30 AM
    • #3
    • 12th Mar 17, 9:30 AM
    With some lenders the 'marital' status of an applicant is the driver of the affordability calculations, ao whether its one or two people named on the mortgage it wouldn't matter, and then if she is 'financially dependant' upon you, her costs would have to be taken into consideration anyway.

    Is this really effecting what it is you are looking to do? If you are concerned about affordability then going for a five year fixed (or longer) would make a much bigger difference than playing about with adding her or not.
    • Stu_N_
    • By Stu_N_ 12th Mar 17, 12:41 PM
    • 187 Posts
    • 106 Thanks
    Stu_N_
    • #4
    • 12th Mar 17, 12:41 PM
    • #4
    • 12th Mar 17, 12:41 PM
    Thanks for the advice,

    I just read the Help to Buy ISA FAQ, it says:

    "In order to be eligible for a government bonus you need to be on the title deed of the property and the property must be purchased with the assistance of a mortgage. Under the Help to Buy: ISA Scheme Rules, you don’t need to be named on the mortgage of the property, however your lender may require all individuals named on the title deed to also be named on the mortgage."

    Well, my wife has a HTB ISA, as do I, and those terms would indicate that some lenders allow what I proposed and some don't. No idea what Nationwide's policy is - I just know they have the best 2 year fix at the moment (which is what we're looking for).

    We aren't pushing the limits of affordability in terms of what we can actually afford, but we are funding my wife's business startup partly with credit cards. The money is already stoozed (all in my name), and we won't use it in our house deposit, hence it's available for business costs. Lenders won't lend us as much as if we had no cc debt. However, if we find a lender who'll lend more, I won't have to pay off the cc's and use up my wife's business funds (e.g. Nationwide, with me as sole applicant, will lend about £115,000 max, and if I have £8k cc debt, will lend £90,000, which is still more than enough - but those figures are about 15K less if my wife is an applicant).

    If we have to pay off our cc debt to get a big enough mortgage, we'd have to re-borrow my wife's business startup money, which will come at some cost (e.g. money transfer fee... would still be way, way cheaper than a business loan!). Paying off all our cc debt is what I'm trying to avoid.
    Last edited by Stu_N_; 12-03-2017 at 12:43 PM.
    • Thrugelmir
    • By Thrugelmir 12th Mar 17, 12:57 PM
    • 53,351 Posts
    • 45,947 Thanks
    Thrugelmir
    • #5
    • 12th Mar 17, 12:57 PM
    • #5
    • 12th Mar 17, 12:57 PM
    Well, my wife has a HTB ISA, as do I, and those terms would indicate that some lenders allow what I proposed and some don't.
    Originally posted by Stu_N_
    Won't avoid the fundamental issue that your wife is a financial dependent. Being named on the title deeds not the mortgage is little more than a legal undertaking to protect the lenders interests.
    “ “Bull markets are born on pessimism, grow on skepticism, mature on optimism, and die on euphoria. The time of maximum pessimism is the best time to buy, and the time of maximum optimism is the best time to sell.” Sir John Marks Templeton
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