mortgage in my name only what if i DIE !!

alanco15

Sorry to open on a somber note,

but after some advice please, we are currently buying a new home ,the mortgage advisor has said it would be easier to put in my name only due to the fact that we are getting married on friday and it will take time for certificates and proof to sort out, and we need to get this mortgage fast, as vendors are getting twitchy.

I know we can do a transfer of equity at a later date ( is there a charge for this )

but what if i was to have a freak accident etc in the meantime what would happen to the house ,does it automatically transfer over to my future wife then she would carry on mortgage payments etc or something else.
any advice please
appreciate it.

luckyfool

Get a will/wills drawn up.

Why is it a problem to apply in your single names now? Does she not have ID in her maiden name?

Dan_1976

Do it in joint and change the names after.

alanco15

Yes your right, we do need to do a will, will get on to that asap, what happens if you havn't got one but are married ?

i guess we could apply in single names now but as the wedding is friday i guess would cause delays changing over names etc, we just need to secure this property as we really like it. and we have already had delays due to a previous mortgage deal falling through.

do you know if there is a charge for changing it to joint later on .

thanks for quick response.

luckyfool

alanco15 wrote: »

Yes your right, we do need to do a will, will get on to that asap, what happens if you havn't got one but are married ?

i guess we could apply in single names now but as the wedding is friday i guess would cause delays changing over names etc, we just need to secure this property as we really like it. and we have already had delays due to a previous mortgage deal falling through.

do you know if there is a charge for changing it to joint later on .

thanks for quick response.

WHY would it cause a delay? Apply in your single names . . . once you are back from the honeymoon and moved in, get your documents changed over to the married name and then request that the lender update your wife's name.

Why go through the legal expenses of adding your wife on later, when you can have her joint on from the start? The logic completely escapes me.

Soubrette

The house may well transfer directly to your wife's name (assuming you are married when you die) but the mortgage company will have a charge on the property - this means that they will expect her to pay off the morgage.

Unless she has access to a lump sum, she will need to arrange a mortgage herself in her name which obviously depends on how much she earns. This will be tricky if there is hardly any equity in the house and she does not earn enough to make the multiples necessary to get a mortgage to cover the existing outstanding mortgage.

As to changing mortgages - when I divorced my ex wanted to take my name off of the mortgage and I was happy to sign anything to that effect. However, he had to cancel that mortgage and take out a new one based on his income etc - he also had to pay fees but I do not know how much. I do not know if it would be the same if you want your wife added to the mortgage.

Alternatively you could take out insurance so that if you die a lump sum is paid out and this is used to pay off the mortgage. Personally I would take it out as a joint life first death insurance so in the event of either of you dying, the mortgage should be paid off.

See an independent insurance advisor if you are not confident in this area yourself.

Sou

zzzLazyDaisy

yes there is a charge - first you would have to re-register the house in joint names at the land registry which will involve solicitors fees and land-registry fees, and second you would have to get permission from your lender to put the mortgage in joint names, which may well mean applying for a new mortgage with all the fees that go with a new application.

Frankly I think the advice you have been given is crazy. There is absolutely nothing to stop you applying for a mortgage in both names and simply telling the lender that you are about to be married. You would then forward the marriage certificate, and the application would continue on that basis.

I suggest that you speak to the solicitor who will be dealing with the purchase.

opinions4u

do you know if there is a charge for changing it to joint later on

£400ish split between lender and solicitor.

we do need to do a will, will get on to that asap, what happens if you havn't got one but are married ?

Helpful Linky

It can get messy, depending on the size of the estate.

Life assurance and will are almost certainly essential.

maninthestreet

Make sure you have life assurance that provides cover at least equal to mortgage capital.

koexelek

zzzLazyDaisy wrote: »

Frankly I think the advice you have been given is crazy.

Agreed.

I cannot see any possible justification for advising you to do that.

All it will mean is significant extra cost when you want to make it joint

alanco15

thanks everyone for your great advice as always,

i will speak to mortgage advisor tomorrow, i couldn't get hold of himtoday.

I rang the mortgage co direct and they said that they would have to cancel the existing application and start a new joint one, but i could carry over the survey fee,

so not sure which way to go now really , start again or go with it and maybe change it over in a couple of years when the deal runs out.