Married House Buying in Joint or Single name?

glastolover

I am about to buy a house. My wife does not currently work, my earnings are sufficient for the mortgage, so we could either get the mortgage and deeds in just my name, or in joint names.

I know there are legal implications in case of future separation if we did it just in my name, but putting these aside, are there any benefits to doing this?

I was previously thinking that if we wanted to buy a 2nd property in the future and my wife was working then, it may be beneficial for her getting another mortgage if she is not already named on another one. Is this the case, or would it be that if my earnings cover the first mortgage that she would be able to use all of her earnings to take out another?

Are there any other implications, aside from the commonly discussed "what to do in case of separations" ones?

Thanks!

Thrugelmir

Your wife is a financially dependent on you. A fact you will need to declare on the mortgage application. Irrespective of whether she is party to it.

Being married she will have a claim on your assets in the event of separation.

glastolover

I fully realise both those points!!!

As I said in the OP, I am not asking about implications in case of separation. I am wondering if there is any future financial situation where, assuming we stay together and there are no issues like that, we would be better off if she did not have her name on the mortgage and deeds we are about to get. Eg if she wanted to take out a mortgage on a holiday home for us in the future or a student house for the kids when they go to uni or something like that.

Thrugelmir

Are you referring to the possibility of your wife buying a BTL?

HARSA

i think the op is thinking of the possibilty of his wife taking up a residential mortgage and renting it out.

This way they can avoid paying a btl mortgage rate

Conrad

Your lender may insist the mortgage goes in joint names. I have just such a case where the searches revealed the applicant was living with his wife. In this if you are not separating legally she goes on the mortgage with you. Sometimes lenders over look this but be aware a last minute underwriters sniffing around could cause you some difficulty - say your wife failed credit score at the last moment, you'd then have no mortgage offer. PS - every customers always thinks they will pass credit scores, they're often wrong.

Millie_Millsters

I hate to say it but if one of you dies, it's so much easier if you are joint tenants, as long as you have insurance to pay off the mortgage.

When I lost my husband, with all the other worries about bills etc, it was relief to know the house was mine without having to wait for probate to be sorted.

star4876

I know what you're saying but it doesn't really make any sense to leave your wife off the application. For one it will probably be picked up and then you could fail the application because of it, but for two if she's not earning anything then she's a dependant and it won't really matter either way.
If you wanted to buy another house in future there's nothing to stop you going for a second mortgage together? There wouldn't be any benefit in having a house each. Also, regardless of future financial implications, you're married - so you're practically responsible for eachothers earnings and debts any way! Unless you're planning to separate then its just splitting hairs TBH.

glastolover

Thanks for all the replies.

I think star4876 probably has it right. Although I don't think I will fail the application, I think I would be allowed to do it in my name alone, but there probably isn't any point. I guess in future if we want to get a second mortgage for some reason we can just do it together.

glastolover

HARSA wrote: »

i think the op is thinking of the possibilty of his wife taking up a residential mortgage and renting it out.

This way they can avoid paying a btl mortgage rate

This was one thought. Is this legal? Would it not still be possible for us to get buy a house with a 2nd residential mortgage andl renting it out?

I severely doubt we will every be in a position to be able to do this, due to the amount we will be spending doing up the house we are hoping to buy now, or whether it would be financially wise given the likely state of the UK housing market for the next 10 years or more.

Annisele

If you buy this property in your sole name, then it *might* be possible for your wife to buy a new property using a residential mortgage at a later date. However, she'd have to have the income to support the application - you can't tell a lender "I'm going to live in this house, and my tenants are going to pay for the mortgage".

If you took out a residential mortgage with the aim of letting the property out, then it'd be *very* hard to avoid committing mortgage fraud. Lenders are wise to people buying a property and then asking for consent to let two minutes later.

If you take the current mortgage in joint names, that doesn't necessarily prevent your wife (or you) from taking a second mortgage in future - subject to income and status.