1 name on mortgage - 2 people's wages????

threestars

Hi everyone,

OH & I would like to get a mortgage next year but OH's credit rating is not very good at all (he had a "if I ignore it, it will go away" attitude to debt before we met & I explained that debt is bad & won't go away unless you actually pay it off!)

My credit rating however is very good and my outgoings are very low so I think I would be able to get a mortgage by myself.

So, even though his debts will be fully paid off soon, I think the best option for us would be for me to apply for the mortgage by myself. I earn 27k p/a & we would need a mortgage of 105000 (15% deposit).

Then we can re-mortgage in a few years once OH's credit history clears up & get his name added.

What would the bank think of this? Would they consider OH's wages at all or...well I don't know...we are very new to all of this

Can anybody give us any advice?

CloudCuckooLand

You may well not need OHs...I'd keep him out of it, the bad history could scupper the application.

You don't seriously expect to gain from his wage, but not have his history counted, do you..? ;-)

Single app looks the way to go.

threestars

CloudCuckooLand wrote: »

You don't seriously expect to gain from his wage, but not have his history counted, do you..? ;-)

Haha, it was worth a try!

Thanks for the reply

josievg

If you apply in your sole name then they won't take your OH's wages into account. Affordability will have to be met by you alone.

You say you have a good credit history and low outgoings so that is a good start. We did something similar recently. We only borrowed 3x one of our salaries whereas you are looking to borrow nearly 4x. Maybe consult a broker to see if the 4x is do-able.

Make sure you are not financially associated on your credit files though - that would scupper your chances.

You will have to state that your partner will be living at the address and they will have to sign a form to state they have no interest in the property.

You don't need to tell the lender your future plans to re-mortage and add him later. You don't need to tell them anything about his situation except to name him as living in the property in the appropriate place on the mortgage application form (as mentioned above).

Good luck.

Wh05apk

If he is not on the mortgage they will not use his income, are you married, if so most lenders will insist the mortgage is joint, if not then you should be ok, but he will have to dign to say he has no financial interest in the property.

Might be worth getting a copy of his credit report (but please don't waste your money on a meaningless credit score) and showing to a broker, depending what is on there, he may actually get a mortgage, and then you can do it properly.

threestars

We're not married (that's the first time I've been glad to say that lol!)

I already checked my credit file (well, only Experian) and we're not financially linked. We have rented a house together but whenever we've borrowed money it's always been in my name and he's paid half via standing order to my bank.

Friends & family have recommended IFAs and Mortgage Brokers to us already but we're gonna wait til we have a bigger chunk of savings & it's a bit closer to the time we want to buy before we go to see them.


Thanks for the advice folks

birkee

If you get the mortgage, he won't have a leg to stand on if you split, or, even worse, if you die. Kicked out of his own (half) house.

josievg

birkee wrote: »

If you get the mortgage, he won't have a leg to stand on if you split, or, even worse, if you die. Kicked out of his own (half) house.

Life insurance and a will to cover the death possibility.

In the event of a split it will be down to the OP's sense of fairness based on who has paid what towards the deposit and mortgage.

If they remortgage jointly in a few years, this short-term problem will go away. In the short-term there is unlikely to be much profit in the property to fight over.

Wh05apk

birkee wrote: »

If you get the mortgage, he won't have a leg to stand on if you split, or, even worse, if you die. Kicked out of his own (half) house.

That's the main reason why it is always best to do this properly, and try and get the mortgage in joint names, rather than try to be devious and trick the lenders.

In a few years time you will also have the additional cost, and possibly stamp duty when you add his name to the mortgage/deeds.

threestars

Lol, thanks for the gloomy thoughts there. We're well aware of the problems that would occur if we split up and the property was in just my name but it's a risk we're willing to take, along with the hundreds of other risks like...

What if our neighbours are horrible?

What if a sink hole opens up in our back garden?

What if we both lose our jobs?

What if the neighbourhood ends up being horrible?

What if the house sets on fire the day we get the keys?

And indeed, what if one of us dies?

We're planning on stretching our budget to 4x my income so we can get a 3 bed house to start a family but...

What if we can't have children?

What if we can have children and they grow up to be axe murderers?

I could spend all day thinking of 'what ifs' but all I can do is stay positive (and, most importantly spend a fortune on insurance;))

threestars

Wh05apk wrote: »

That's the main reason why it is always best to do this properly, and try and get the mortgage in joint names, rather than try to be devious and trick the lenders.

Are we tricking them? I'll have to put down that OH will be living with me, won't I?