Add wife's contribution to household as "income" on mortgage application

Fjords

Here's the situation. We are thinking of getting a mortgage. My credit rating is perfect, although I have around £700 going out per month in debt. That will be halved next june and the year after I will be debt free (HOOORAAAY). I have an income of £2300 per month.

My wife has a rubbish credit score with defaults all over the place. It is now under control as she is on DMP with CCCS.

We are NOT linked on our credit records and have separate finances.We are of course sharing rent and bills at the moment.

As you can see no lender will touch my wife with a bargepole so I have to do a sole mortgage application.

My question is quite simple. My wife contributes half of the household costs including rent. This is roughly £600 per month. Can I add that as "additional income" on my sole mortgage application to boost what the banks will offer me? I pay all bills from my account and she transfers £600 every month on the same day.

Also, do lenders take into consideration that I will half half of my debt repaid in the next 12 months and be debt free in the next 24 months?

In terms of the deposit (25k of a £200k mortage )our families have agreed to help us. However, they will NOT help us repay our debt. Only the deposit. Which is fair enough.

Emmzi

If I were your lender I would want to know why it wasn't a joint application and as soon as you told me I would discount her income.

I am not sure a £175k mortgage is affordable on your salary/ debt combination - any reason why you can't wait the 12 months until some of the debt is gone?

Emmzi

Actually hold on - what happened to FIL lending you half the money (from feb?)

Fjords

I'm surprised you remember that post (or maybe you just looked at other threads I've started?)

Anyway, that is still in discussion but we are looking at many options. The deposit will come from him but we might want him to "own" as little of the house as possible or perhaps even have the deposit as a loan and we own the whole house. But that can't happen with my current income, hence my question.

I wasn't going to bore everyone with my previous thread, hence I made this thread with only the basic necessary info required in order to answer the question.

Emmzi

ok. well, broadly, many seem to still ne doing 4x salary, but with less than 25% deposit you may struggle, and frankly I'd leave your wife out of it entirely as it's only going to result in questions you do not want to answer.

Note that some lenders count (loans + c cards + mortgage) and add them up, then do the salry multiplier against that.

I'd wait til the loans are gone...

Conrad

No lender will take her income, only the applicants income is of interest. Otherwise, in the event of repossession you would likely argue the loan was irresposible as only your income was relevant to the application, which could mean the repossession order was denied.

Fjords

Hi,

I understand that only the applicants income is of interest, but I was thinking of adding the £600 she contribute on my mortgage application under "additional income". I could even get her to pay the £600 to her dad who in turns pays it to me and disguise it as "Monthly Parental Support"... Or similar ..... I'm trying to be creative. :rotfl::rotfl:

_Andy_

Mortgage fraud = not a good idea.

theartfullodger

I'm trying to be creative

Oh dear.

If you skip off to the Bankruptcy board
http://forums.moneysavingexpert.com/forumdisplay.html?f=136

- you will find stories from people who regret now thinking that way...

Be honest & straightforward. Would you want your mortgage lender or the person you hope to buy from "trying to be creative"??

Cheers

Lodger

Fjords

Well... I don't trust banks as far as I can throw them (and that's not very far).

The thing is... She had loads of debt and problems that was sorted over a year ago. She is on a plan with all the debtors and she is paying everything back. She is contributing to the household and has her own income so in my subjective eyes it makes no sense for the banks not look at the whole picture. Unfortunately, I know if we apply for a mortgage in both our names, it will be a case of "computer says" no.

The government (i.e. ME, the taxpayer) has bailed out the banks many times now. The banks have said "sorry, we created a mess, please forgive us". Why doesnt it work the other way around

We are planning on starting a family pretty soon. I know you guys will say, don't do it until your debt free etc. but we DO actually have the funds to pay for this. I've done the matsh many many many times.

We don't want to rent since we know from experience, that we can be thrown out if the owner wants to sell the house. We need something secure.

Emmzi

If she is on a DMP, then the debt is not sorted. It is not sorted until it is all paid off or up to date in line with the original agreements. not ones she may have sorted out now.

The computer will say no because the best indicator of future behaviour has been shown time and time again to be past behavior. Banks like a profit, they don't just make this stuff up to reject people for the hell of it.

I don't think you can ever afford a baby, so if you want one, have one, and you will find a way.

What you can't afford is a £200k house. So either wait until you have a proper deposit and debt repaid, or lower your sights a little.

I know this is not what you want to hear. I am sorry you will have to wait. But I cannot see any legitimate way around it.