adding husband to mortgage

scruffbucket

Hello

I'm new to the forum so hope that I will get a wealth of experience from you all.

A bit of background first.
We bought our first house 6 years ago in just my name due to my husbands credit score, but after a lot of hard work we think that it should be close to excellent by around October time.
We live in a little terrace house in one of the most expensive parts of the country with 2 little kids, and to be honest could stay here forever, except we are running out of space, and as a result added a third bedroom onto the property at the end of last year, and have plans to try and go into the basement to have a big kitchen, then I reckon we could stay here until we retire!!

We borrowed 25K off of my Dad to fund our loft conversion, with the plan that once the value of the house was increased with the extra space, we would remortgage, add my husband to the mortgage for his extra salary to make a difference, and borrow the money to do the kitchen and pay my Dad back.

Our mortgage is long out of term and is following the basic bank of England interest rate so we are not keen to lose this in the short term, as our mortgage repayments are really affordable, and there was the hope that we would start overpaying, if baby number 2 hadn't come along!!

However since December I was made redundant (read sex discrimination claim) after returning to work from maternity leave for 2 days....they claimed they had forgotten to tell me about my redundancy. I had a great pay out from them, and have been spending the last 6 months looking for the same kind of flexible work (as a fashion buyer) that I had before. This has proved pretty fruitless, and now I have eaten into a lot of my pay off whilst looking (just through living expenses mind!) I have taken the decision that at the moment it is more affordable to be a stay at home mum, and live carefully off of the remaining payout until my youngest is at school, (about 3 years from now).

The problem we have now is that I am a non earner, and the mortgage is in my name, so we have no room for manouver (apart from selling) unless my husband joins the mortgage. He earns 80K so a great salary (although sickeningly due to where we live doesnt stretch far).

If we were to add him to the mortgage, would it mean that we had to remortgage under different rates, or could we still keep the current mortgage that we have until interest rates start to rise (if it happens in the near future).
My neighbour who has just moved and bought a place with her new boyfriend, told me that she took her mortgage with her, and her boyfriend borrowed the rest.....is this possible?

What are the best steps forward to acheiving our longterm goal of making our property bigger to remain in, with my current situation.

I would like it to go like this but not sure if this is a reality
1. Add husband to exisiting mortgage (without declaring my loss of salary)

2. end of year keeping existing mortgage, and borrow further based on husbands salary to pay Dad back and extend house.

We bought at a good time and have about 200K equity in the house, but will this and my husbands good salary count for anything, when the exisiting mortgage is in my name and I dont have a job. How will this affect the process?

All very confusing. Don't really want to alert mortgage company to unemployment just yet whilst the mortgage is currently being paid without problem.

Hope you can help
Thanks

ACG

Any extra money you borrow will be at whatever rate(s) are available at the time.

Effectively it will be like 2 mortgages running concurrently or a main mortgage with a sub account.

There is a lot of info in that post we dont really need, we can only really go off the facts about your actual circumstances and what your hoping to achieve.

We need to know about why your husband had bad credit (CCJs, Defaults, How many, How much, When were they satisfied).
How much is outstanding and how much your looking to borrow, whether you have any other debts in the background (Credit cards, loans HP etc). Who your lender is.

That should help us a little.

scruffbucket

Hello

Apolgies for unrequired info, Im a wordy type, I like to get my thoughts down.

My husband had a catalogue of issues as an errant 20+ something, Def defaulted payments but has not defaulted on anything for years now. He did have a CCJ which has been satisfied for about 2 years now, but he is a bit remiss about keeping on top of stuff, and although it had been cleared he had lost the receipt, had to apply through the courts again for this, and this has been lost in the ether, so has been unable to ask for it to come off his credit score, although it reached its 6 year birthday this month, and I believe it will now come off automatically?

Interestingly enough, the 2 major credit rating companies experion and equifax both have completely different ratings for him, one is rated as excellent without showing any sign of this ccj, the other is rated as fair to good with the ccj. How can this be. We got told by one mortgage company that dependant on which credit agency they use, it would be either a really favorable outcome for him or a not so favorable outcome...this industry is so fickle.


Our mortgage is currently £214K and the house is valued at around £425K. As I understand it from previous mortgage advice, we can borrow up to 80% of the value of our home, which means that 80% of £425K is £340K minus the outstanding mortgage of £214K leaves £129K available to borrow......is this calculaton correct?

Our mortgage is currently with C&G

Without proper estimates, I reckon we would need to borrow somewhere between £70 - £80K in total for what we want to do.

Re outstanding debts, we have a lease car of £300 per month for the next 4 years, but no other debts. I have a credit card but any spending on this is minimal.

scruffbucket

actually just had ccj info from husband, it was satsfied in 2007 and has now been removed from his credit score. Not sure how long it should be before his rating improves?
Last default was 2 years ago.

ACG

It may have only just been removed so it might update next month?

The amounts your looking to borrow isnt stretching the LTV too much. Your husbands income alone does support a mortgage of £284-294k but with the car and dependents it might be pushing it a little.

I say this a lot on here but i would probably speak to an advisor once both of your credit files have been updated. It might also be worth getting a copy of your husbands callcredit credit report too.