Mortgage in Sole Name (Married)

Thrugelmir

samand wrote: »

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.

Then I fail to understand why you are unwilling to be named on the mortgage? As your income has no bearing on whether the actual application is accepted or not.

You are making a rod for your own back , making problems where none actually exists.

samand

Wh05apk wrote: »

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?

Thanks for that information. No, the loan is in my name. I am not a limited company as yet. Is there anything we can do? Kids and I have been declared so all above board, but that will probably be why they want me on the application.

samand

Thrugelmir wrote: »

Then I fail to understand why you are unwilling to be named on the mortgage? As your income has no bearing on whether the actual application is accepted or not.

You are making a rod for your own back , making problems where none actually exists.

Because of the loan under my name and the fact I will be down on the application as having zero income. I might have something wrong there, but won't that look bad? Surely like you they will wonder how I am paying for it.

Sorry if I am missing something.

Thrugelmir

samand wrote: »

Sorry if I am missing something.

No need to apologise. Its only possible to comment on the facts that are given. So sorry if its like an interogation.

How much is the business loan for, and who or what gives the bank security for the advance?

jockosjungle

No it won't look bad with no income, look at the PO criteria carefully. They'll lend 4.5 times the main person salary and 1 x the second person (they will calculate it differently if it works out better on a more shared basis).

If your husband can comfortably fit into the 4.5 times bracket I doubt it will be a problem, I'd put on the application that you have zero income but self employed and add a note in the notes section to explain. Put your actual income in the notes but also that you've not been doing it very long and couldn't produce the required accounts.

As long as your husbands income covers the mortgage multiplier then they will not mind.

I'm basing this on my own experience, although admittedly we only wanted just under twice my salary, they may be more nervous if you wanted close to the maximum.

Although I do not know, I imagine a mortgage lender would be happier if you were on the mortgage even if you don't contribute. If you default then you've got twice as many people to chase for payments.

R

Thrugelmir

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