Increasing max borrowing amount on new mortgage - single/joint applicant

giger

Hi

I have recently accepted a new job and we will be selling our house to relocate. We've been looking in to lenders that offer us an immediate mortgage based on my new permanent work start date, as opposed to being in the role a number of months. I've found a few lenders that are happy to do this, but the problem is my wife will be leaving her job and looking for employment in the new area after we have moved - the lenders do not like this so are offering us less as a result as she will have no income for a short while. I should also point out that we have 2 young children below school age. We will have no childcare costs initially as my wife will look after the kids until she is able to find part time work. However this is effectively classed as having 3 dependants. What I have noticed is that there is a big difference between the max borrowing amount if I apply as a single applicant with two kids, as opposed to a joint applicant with my wife earning zero (as she will have left her job when we move, although she will be in work when we apply).

Question - can I actually apply as a single applicant in order to borrow the amount I want, and then remortgage at a later date to include the wife as a joint applicant (when she is working), or is there any other way around this?

The_J

Yes it is possible to do this. There will be a fee of around £300-£350 to do that in the future. Your wife should obtain independent legal advice because if you guys break up then she is stuffed.

Why don't you rent for 6 months though? There are so many advantages to that. Firstly the fact you can apply jointly and therefore have the pick of the mortgage market. Secondly you can get a feel for the area, where's nice, where's not so nice, where's good for schools, where's the supermarket, where do your colleagues at work live, where's the best gym. With stamp duty/moving costs etc. all at a very high level and house prices likely to remain fairly stagnant for a decade it is financially unwise to move more than once every 5 years.