Married - Sole Mortgage Application

Senior_Paper_Monitor

For clarification - they "allow" a married peron to apply in their own right - but there is a growing trend to insist you can't financially disassociate from a spouse and if they discover a spouse with bad credit to take that into consideration even if not on the application/deeds.

The policy on this varies by lender and changes (currently against accepting disassociated spouses it appears) on thir currently regular reviews on general underwriting policy - this item is not currently published in intermediary criteria documents and we review on a case by case base with individual lenders.

ninky_2

Senior_Paper_Monitor wrote: »

For clarification - they "allow" a married peron to apply in their own right - but there is a growing trend to insist you can't financially disassociate from a spouse .

possibly due to the growing trend in career bankrupts? all assests in one spouses name and all debt in the other. for a prime celebrity example see anthea turner and grant bovey.

rather unfair though. if your partner runs up debts you shouldn't be held responsible for them. that said, plenty are keen to claim their share of so-called spouse only assests in divorce!

luckyfool

ninky wrote: »

i used a broker for both my mortgages so i would agree it can be helpful to get a suitable product. i would also highly recommend reading the advice on getting mortgages (including getting 'fees free' broker advice) by clicking the purple mortgages and homes tab at the top of the page.

i'd be interested to know which lenders don't allow married people to apply for a mortgage in sole name. seems to be a form of discrimination to me.

Many lenders will not allow a new application in sole name for a main residential mortgage where the applicant is married, and will live in the new property with their spouse (assuming its a new purchase).

If the property is already in a sole name and is being remortgaged in a sole name then that is pretty much never an issue. If its in joint names, and being remortgaged into a sole name (but they are not splitting up), then most lenders will again smell a rat and say no.

ninky_2

i don't quite get this "smelling a rat" business. surely if the mortgage is in sole name and the mortgage goes into arrears then they reposess as with any other mortgage. the partner's debts are of no relevance to the lender as they are not secured on the property.

Sibelius1

Senior_Paper_Monitor wrote: »

For clarification - they "allow" a married peron to apply in their own right - but there is a growing trend to insist you can't financially disassociate from a spouse and if they discover a spouse with bad credit to take that into consideration even if not on the application/deeds.

The policy on this varies by lender and changes (currently against accepting disassociated spouses it appears) on thir currently regular reviews on general underwriting policy - this item is not currently published in intermediary criteria documents and we review on a case by case base with individual lenders.

Thanks very much for all the input guys. :T

In light of the bolded statement, would it be best for my broker to disclose my default, and the fact that we are not making a joint application as a result of my bad credit score at the pre-presentation stage?

Or should we just keep quiet about it?

ninky_2

Sibelius1 wrote: »

Thanks very much for all the input guys. :T

In light of the bolded statement, would it be best for my broker to disclose my default, and the fact that we are not making a joint application as a result of my bad credit score at the pre-presentation stage?

Or should we just keep quiet about it?

"we" are not making an application at all. your wife is. as such the property will be in her name. i'm sure your marriage is rock solid but it might be worth checking what would happen if you split up - particularly if you are going to contribute towards the mortgage payments.

Sibelius1

ninky wrote: »

"we" are not making an application at all. your wife is. as such the property will be in her name. i'm sure your marriage is rock solid but it might be worth checking what would happen if you split up - particularly if you are going to contribute towards the mortgage payments.

A bit pedantic and patronising aren't you? Maybe you should read the 'we' in the context it was written.

Here it is again

In light of the bolded statement, would it be best for my broker to disclose my default, and the fact that we are not making a joint application as a result of my bad credit score at the pre-presentation stage?

OK then, do you think my wife should disclose the fact that I have a default when she applies for her mortgage?

luckyfool

Yes, better to disclose it. If you were remortgaging and removing the person with bad credit then you would be out of luck. With the scenario you outline there should not be a problem placing it, but you will definitely be better off if the broker checks up front that the lender is ok.