2 names on the mortgage, 1 income, is it possible?

Kyrae

Just wondered if anyone has any advice on how to get a mortgage in 2 names with only 1 income? Everywhere we've looked so far the mortgage lenders seem to automatically lend less if there's 2 names on the mortgage than if the mortgage is only in one name. We've been told this is because the unemployed person is seen as a dependent, which does make sense!

Our situation is that my partner is working, and i've just moved to the area and had to leave my previous job to relocate so i'm unemployed. However, i have over £40k of savings (excluding house deposit) that I want to use to pay my share of the mortage and bills, and i'm actively searching for a job at the moment and i'm sure i'll find something before my savings run out!

In a worst case scenario we'll have to rent until I find a job, but we've already seen the perfect house we want to buy... we just can't find a mortgage

Has anyone else got a mortgage in 2 names with only 1 income? Any help would be appreciated!

pie81

Am I missing something... why do you want to have your name on the mortgage?

doubleangel

I've just done this with Natwest - but my partner and I are both have Natwest accounts so was easier for them to analyse our finances. They did reduce the amount we could borrow though.

I also asked HSBC and they said it wouldnt be a problem so long as LTV was no more than 80%.

Maybe put some of the £40k saving to reduce the amount of borrowing and go interest only until you can find a job?

koexelek

pie81 wrote: »

Am I missing something... why do you want to have your name on the mortgage?

Probably to have a legal claim to the house ?;)

Kyrae

Thanks doubleangel, it's good to know that someone else has managed to do it! Our LTV is going to be about 70% so it might be worth us talking to Natwest and HSBC! Ideally we'd like a fixed term repayment mortgage, we hadn't really considered interest only but it's something we could look into

Pie81... it feels like the right thing to do as half the debt will be mine, and as half the deposit is mine and i'll be paying half the mortgage payments i'd like to own half the house

morg_monster

I was talking to our friends yesterday in their new house and we were picking their brains on mortgages as we'll be buying soon. He has a "normal" salary, she is a freelance journalist, and after the tax-deductible parts of her income are excluded she only earns £8000 a year or something. In the end they just used his salary on the mortgage application, however they are both on all the deeds etc.
It's important for us too as we might just base our mortgage application on DH's salary as I'm a student, however as I'll be contributing to the mortgage and some of our deposit was a wedding present from my parents, I want to have my name in there too!

Mrs_Bumble

It is possible with some lenders, have you approached an independent whole of market mortgage broker?

Kyrae

Hi morg_monster, putting both our names on the deeds and his on the mortgage might be a last resort option, hopefully there's some understanding lenders out there somewhere who will take savings into account though! Hope you and your partner manage to find a good deal too!

Mrs Bumble, glad to hear it is possible! The house we're looking at buying is a new build and the company put us in touch with a mortgage broker who advised we apply to the Woolwich but they turned as down and said they can only lend that amount to my partner, and can't include me. We didn't check that the advisor is an independent whole of market though!

i_hate_the_csa

I'm looking to get a mortgage soon aswell.Is it the best thing to use a broker? Makes your head spin after a few hours of looking!

sdooley

If you were to get some temporary work, even a few hours a week, now, the bank might not take the wages into account, but might not view you as a 'dependent' - common sense would suggest that if you've managed to save up £40,000 you're hardly dependent but unfortunately common sense doesn't swing much.

bluemrchimp

Kyrae, I'm going through this exact same situation at the moment - I'm self-employed and don't have x years accounts yet so we just went on OH's income.

We were approved for a mortgage by RBS on this basis, (LTV 75%) so we'll both own the house (and both pay for it) but the mortgage will be based on her salary alone. (It's slightly depressing on the papers that they put down my income as £0 because they can't prove it, when I do actually earn an alright living!)

The only thing I cannot stress enough is to keep banging on about exactly what you want. We were initially recommended a mortgage, applied for it and went a week or so down the track before finding out (only when we asked) that my name could not go on the deeds! Was very angry about that. So my advice is go to a broker and spell out as crystal-clear as you can that you must both be on the mortgage (even with one of you not earning) and you must both be on the deeds.