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  • FIRST POST
    • Stu_N_
    • By Stu_N_ 12th Mar 17, 6:53 AM
    • 195Posts
    • 112Thanks
    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
    • 32,207 Posts
    • 17,249 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
    • 673 Posts
    • 386 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
    • 195 Posts
    • 112 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
    • 55,827 Posts
    • 49,193 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.
    "Wide diversification is only required when investors do not understand what they are doing." - Warren Buffett
    • lewiserz3
    • By lewiserz3 15th Jun 17, 11:53 PM
    • 9 Posts
    • 2 Thanks
    lewiserz3
    • #6
    • 15th Jun 17, 11:53 PM
    • #6
    • 15th Jun 17, 11:53 PM
    What happened in the end if I may ask?

    Me and my partner were considering a very similar scenario but I have noticed first direct don't seem to reduce the borrowing amount based on 1 person not having an eligible wage and also seem to have slightly better rates than Nationwide too. Curious as to whether you found a solution.
    • clairebeth
    • By clairebeth 16th Jun 17, 12:40 PM
    • 133 Posts
    • 46 Thanks
    clairebeth
    • #7
    • 16th Jun 17, 12:40 PM
    • #7
    • 16th Jun 17, 12:40 PM
    I'm not sure if this is the information you need, but we are in the process of completing a First Direct mortgage application. I'm on maternity leave, and, although I was able to supply them with info about my return to work, they initially looked at it purely based on my husband's wages and said they could probably approve it on one wage alone by extending the term. (First Direct offer unlimited overpayments, so the term is insignificant to us, as we can just increase the monthly payment to decrease the term once it's in situ). I'm not sure if that's what you were asking, but yes, they were prepared to do a joint application but only take one person's income into account so long as he could meet affordability. Phone them and ask, I have found their customer service to be fantastic and most times you phone you get straight to a real person, not to a machine where you have to 'press 1 to...'.
    • minimike2
    • By minimike2 16th Jun 17, 3:02 PM
    • 1,911 Posts
    • 1,409 Thanks
    minimike2
    • #8
    • 16th Jun 17, 3:02 PM
    • #8
    • 16th Jun 17, 3:02 PM
    I know this is a few months old now, but I only know of one lender who used to do joint proprietor sole borrower lending. I don't know if they still do, but it was the case in 2015. I have never come across it from anywhere other than this one lender.

    It may not have been required, hopefully OP followed the advice to go to a broker.
    I am a mortgage industry professional. 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
    • kingstreet
    • By kingstreet 16th Jun 17, 3:24 PM
    • 32,207 Posts
    • 17,249 Thanks
    kingstreet
    • #9
    • 16th Jun 17, 3:24 PM
    • #9
    • 16th Jun 17, 3:24 PM
    I know this is a few months old now, but I only know of one lender who used to do joint proprietor sole borrower lending. I don't know if they still do, but it was the case in 2015. I have never come across it from anywhere other than this one lender.

    It may not have been required, hopefully OP followed the advice to go to a broker.
    Originally posted by minimike2
    Still one.

    Probably the same one.

    A solicitor mate told me he doubles his fee when he gets one of these the legal charge is such a nightmare.
    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.
    • minimike2
    • By minimike2 16th Jun 17, 5:18 PM
    • 1,911 Posts
    • 1,409 Thanks
    minimike2
    As I started reading that I thought you were going to say he doubled his fee when he get's anything with the lender.....which wouldn't suprise me!

    It's certainly a nightmare.
    I am a mortgage industry professional. 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
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