Mortgage application, joint or not?

hedgehopper_2

Sorry if this is really basic, but if one half only of an unmarried couple applies for a mortgage (because for various reasons it's quicker and easier to do it that way than applying jointly), can both partners still be joint owners (or indeed tenants in common) of the property?

thanks
H

david29dpo

Yes and no. Both names will have to be on the loan to be on the deeds but you could have a separate trust deed to split the share.

hedgehopper_2

Oh...good grief, lucky I thought to ask. So at what stage will we have to do that to ensure this happens? Is this something we'd have to discuss with our solicitor after making the application?

The reason being I am self employed and it's just more complicated to get my documentation together and we have to arrange this very quickly. If I'm wrong in thinking it's likely to be tricky then pls let me know!

david29dpo

If you are both going to live in the property the loan will have to be in both names but if your partners income is enough to cover the loan, there should be no problem.

hedgehopper_2

David> I'm now confused. So both names CAN be on the loan even without them taking my income into account, checking my tax returns etc?

(his income would be enough to cover the mortgage if it came down to it, yes)

Is the issue here that they'd only have to perform checks on the second prospective buyer if the first was deemed to be unable to cover costs on their own?

poppysarah

http://www.guardian.co.uk/money/2010/jun/20/mortgage-warning-unmarried-couples

Read that though

keith969

hedgehopper wrote: »

David> I'm now confused. So both names CAN be on the loan even without them taking my income into account, checking my tax returns etc?

Yes. It makes no difference if you're married or not, if your combined income meets the requirements then you can have a joint mortgage, even if your income is zero. You will of course be jointly liable for the loan though.

hedgehopper_2

Poppysarah> I'm not asking about the joint tenants vs tic question.

I just need to know if I can actually co-own this place unless my name is on the actual mortgage loan. I'll be paying half of it once we move in either way, but since we need to arrange it quickly and I am self employed, we are thinking it might be easier just to apply in my partner's name since his salary could cover it.

daisbuys

Let you other half take the mortgage out on his name alone, and then get his solicitor to put your name on the deeds after he has bought the house. This should cost approx £300 to arrange....

Richard_Webster

I just need to know if I can actually co-own this place unless my name is on the actual mortgage loan. I'll be paying half of it once we move in either way, but since we need to arrange it quickly and I am self employed, we are thinking it might be easier just to apply in my partner's name since his salary could cover it.

I think the issue is the extent to which a lender bothers to check a second income if the first income is sufficient. They will want to do credit checks to make sure neither or you are bankrupt or have CCJs etc but they will either insist on checking both incomes (and seeing accounts etc for self employment) or will say that as long as the other income is OK they are not bothered if accounts cannot easily be produced. If they take the second line you shouldn't have a problem. So that is what you need to find out form the lender - but I would go into it on the basis you want a joint mortgage if at all possible.

One or two lenders (HSBC/First Direct is the most obvious) will lend to only one person but take security (have mortgage deeds signed by) both so that way property can be in joint names. Because both have signed mortgage deed both get kicked out if payments not made, but lender cannot then chase for shortfall against the non-borrower.

However the lenders that will do this are few and far between and you would be looking at people like Coutts if not HSBC.

Let you other half take the mortgage out on his name alone, and then get his solicitor to put your name on the deeds after he has bought the house. This should cost approx £300 to arrange....

This might work but you have the extra cost and also the lender will have to agree to it and may still want to check the income etc so you may be no further forward.

jockosjungle

Post office didn't mind having my wife and I on the mortgage, but they only cared about my income as I said on the application that my wife worked on a temp basis and the job wasn't long term.

Can you give us some figures? What does your partner earn? How much are you looking to borrow?

you say his income could cover the mortgage, do you mean his wages would only be 4.5 times the sum borrowed?

R