Mortgage in Sole Name (Married)

samand

Hi,

Here is our situation. We are married and our current mortgage is in joint names. We are now looking at buying another house and have an application for a new mortgage in progress with the Post Office. Since we took our mortgage out, I have had children and I have recently started working for myself. Unfortunately, I haven't been working for long enough for my wages to be taken into consideration on our new mortgage.

I also have a small business loan outstanding and so because of this and because I can't contribute to the mortgage as yet we thought it best that my husband apply for the new mortgage in his name. We know all about declarations of trust etc. and the plan is to add me to the mortgage and deeds at a later date. Also, if we add my details in as 0 income, the amount we can borrow goes down.

We have 80% LTV and have never missed a payment on our current mortgage.

The Post Office are saying that I need to be added to the mortgage as our current mortgage is in joint names and the sale proceeds are going to be used as a deposit for the new house. My husband (who is an accountant) pointed out to them that as we are married it is legal for us to transfer sums of money between us.

Sorry this is so long-winded. Can anybody make sense of this. They have however asked for payslips. Thanks to anybody who can shed light on this or spot any other potential problems with our situation!

SmlSave

Surely if the mortgage is for the new property and it'll be in the sole name of your DH with the deeds then the post office shouldn't really have a problem?

You'd have to sign the consent to mortgage " Occupiers consent "

Have you seen anyother mortgage comps to see what they say?

samand

Thanks for your reply. Well, that's what I don't understand. We know that the deeds and the mortgage will be in his name and about the occupant's form as we had looked into that before.

I think they are saying that the money for the deposit can't be used from the sale of the house towards the purchase of a house in his sole name. But I would give my consent for that so maybe we need to get a solicitor involved.

Why are things never easy?

Annisele

That does sound a little odd. People don't have to be married to be allowed to transfer money to each other!

When your husband applied for the new mortgage in his own name, did he disclose that he had dependants? I'm wondering if the problem was that they thought he was single but now they've discovered he isn't.

jockosjungle

Am currently applying through the PO and in a similar situation, we can easily have the mortgage thru my salary and my wife is a temp. I just put her down as employed with zero salary and a note to say that I don't want her salary considered for the mortgage because her wages are not certain.

They are happy with this, they've agreed to the mortgage and just need a valuation and to see three of my payslips.

You can be on the mortgage but not have a salary to contribute

R

Thrugelmir

samand wrote: »

My husband (who is an accountant) pointed out to them that as we are married it is legal for us to transfer sums of money between us.

Quite correct. Then your husband transfers you all his money. Defaults on the mortgage and you have no liability.

The reason for you being added to the mortgage is for security in the case of default.

If your earnings are zero though you are self employed, then it suggests that your husband is subsiding your business as well.

Sounds like you are playing games, which any underwriter will pick up on very quickly.

samand

Thanks for the replies, much appreciated. I can assure everybody we are not playing games, just trying to work out the best option for us right now. As I have a business loan, but cannot put my self-employed wages on the table yet I think that will count against us. If they see I have no income, but that I owe towards the loan (which I have never missed a payment on and I have a 999 credit score on Experian) then I am sure they will decline based on that information. I owe over 2K a month, but can't submit my accounts until I have a year's worth.

Thrugelmir

samand wrote: »

Thanks for the replies, much appreciated. I can assure everybody we are not playing games, just trying to work out the best option for us right now. As I have a business loan, but cannot put my self-employed wages on the table yet I think that will count against us. If they see I have no income, but that I owe towards the loan (which I have never missed a payment on and I have a 999 credit score on Experian) then I am sure they will decline based on that information. I owe over 2K a month, but can't submit my accounts until I have a year's worth.

If you have no income how do you repay the loan?

Your 999 score with Experian counts for little as mortgage lenders will apply their own criteria.

samand

I became self-employed earlier this year, but my wages (I earn enough to cover the loan and more) can't be taken into account for the mortgage until I have at least 1 year's worth of accounts. So we thought we would apply for a mortgage in sole name as effectively my salary is technically 0, but because I have debt that won't look too good.

There is nothing shady going on and my partner's salary will cover the mortgage payments.

samand

samand wrote: »

I owe over 2K a month, but can't submit my accounts until I have a year's worth.

Oops...that was meant to say I earn over 2K a month. That would be some business loan otherwise!

Wh05apk

There seems to be a lot of these queries at the moment, if you are married, then you should both be on the mortgage and deeds, few lenders will allow you not to be (Halifax are one I think)
It should make little difference, unless you are misleading the lender into thinking you are single, as they will ask if your husband has any dependents, to which he should declare the kids and you, they will then base affordabilty on these facts.
With regards to your business loan, is it in the business name or yours, are you a ltd company?