Joint Names on Deeds but Sole Mortgage

louis_2004

Hi everyone

Can you please offer some advice,

Background info: Myself and my partner are first time buyers with a deposit of £126,250. I need to raise a mortgage for the remaining portion of the house purchase cost £112,500 (purchase price £238,750)

This mortgage will be a sole mortgage as my partner has cash for his side of the purchase.

HSBC have told me that they will not consider a mortgage for one person if the property is jointly owned, the other owner has to go on the mortgage application with a zero income and will be treated as a dependant.

My income is £29,690 and I need a morgage of £112,500 can this be done?

Many thanks

Louis 2004

unite79

The party named on the deeds has to be named on the mortgage, in essence the Mortgage has to be in joint names.

Based on your income, yes £112,500 is achievable.

louis_2004

Thanks for the reply, however on mortgage calculators when I input a joint mortgage with the second applicant earning nothing what I can borrow is far less than if I was on my own?

Why is that?

Bearing that in mind which lender would £112500 be achievable with

Thanks

Conrad

You cannot be party to a property deed without being on the mortgage deed, as this would prevent the lender repossessing the asset if a third party were not subject to the mortgage deed.

This often causes confusion.

happyhunter

strange... HSBC said to me its ok to take the mortgage in sole name even if the property is in joint names.

louis_2004

I spoke to them last night and the advisor I was speaking to said their criteria for this had changed recently.

JimmyTheWig

louis_2004 wrote: »

Thanks for the reply, however on mortgage calculators when I input a joint mortgage with the second applicant earning nothing what I can borrow is far less than if I was on my own?

Why is that?

I believe (and note that this is only what I believe and so may not be accurate) that you can have a mortgage in joint names but worked out on one person's earnings. The online calculators are just a guide. So put your earnings in the sole applicant calculator and that should give a more realistic result.

Obviously your partner going onto the mortgage will result in a credit check on him and him being jointly liable for the debt if anything goes wrong. (But I guess if you aren't prepared to do that for each other then you shouldn't be buying together!) The bank won't care where the money to repay the mortgage actually comes from.

louis_2004

Interesting, has anyone else heard if this is possible?

happyhunter

louis_2004 wrote: »

I spoke to them last night and the advisor I was speaking to said their criteria for this had changed recently.

My mortgage application in sole name was submitted only last week. Received the mortgage offer yesterday, and will be posting it back tonight. Hope they haven't messed this up.

louis_2004

It maybe an idea to check as Conrad said earlier it seems cut and dried. I agree it would be a nightmare if you would have to change everything at this stage.

Good Luck

On a happier note I have just spotted Britannia have two options when taking a joint mortgage, one of which suits my circumstances 4.25 x of the higher income plus 1 x of the lower this suits my situation and allows me to borrow what I need.

Thanks everyone

happyhunter

right, just clarified with HSBC on the phone.

If you applied for the mortgage via phone they can only set it up in joint names.

If you applied in branch with a mortgage advisor, then they can set you up in sole name.