Does it matter who's name is on the mortgage when your married?

Mrs_Egg

I've been living with my husband for the last 4 years, weve been married for 2. We moved into our first house together after 6 months, he sold his flat and he transfered his mortgage onto the house we now live in. (His name only on mortgage, deeds etc..)

We have decided to change the current mortgage to a BTL (new lender) and get a mortgage together for our new house. Now the broker has said it will cost more to have my name put onto the BTL mortgage and has asked what % ratio do we want our new house mortgage to be at as i'm putting down a large deposit for this house. Now i'm just wondering should both mortgages be 50/50 or should i leave husband on the BTL on his own and put our new house more in my favour or does it even matter as we're married so its all 50/50 anyways if we were ever to split?

BTW no plans to split up but just want to understand what the benifits/disadvantages were of doing this.

Figures -

36K equity in BTL House (original deposit by husband plus raise in house price (20K original deposit)

100K deposit on new house supplied by myself.

We both work so pay equal amounts towards everything and have no children at the moment although we plan to in the future.

Mr_Thrifty

You go, girl!!!

princeofpounds

You need to understand the benefits/costs of being joint tenants or tenants in common first of all. The way you share a property is important.

As for having your name on the deeds, it can matter but it depends what is important to you. Short term you might be at a disadvantage without your name on deeds as you don't have an automatic right of occupation, but long term you still have a right to half the marital assets if you divorce.

Personally, if I were married I would want joint names, but I wouldn't freak out and make a huge relationship issue if it had been previously overlooked.

kingstreet

Mrs_Egg wrote: »

it will cost more to have my name put onto the BTL mortgage

It costs no more to make a joint application for the mortgage. The only cost difference is perhaps £300 in legal costs to complete a transfer of equity at the same time as the remortgage.

As this is likely to be a very small fraction of the thousands you're going to spend in fees on the two transactions, I wouldn't worry about it too much.

Better in joint names IMHO.

Richard_Webster

I wouldn't say it mattered from a relationship point of view but having it in joint names means that any rental income can be split between you which might save some income tax and also when you eventually sell you will have two sets of Capital Gains Tax allowances.

Mrs_Egg

Thanks everyone for your responses, I hadn't thought about the income tax and capital gains tax allowances which could be a larger saving in both names for the extra £300 in legal fees. Knew there would be something I hadn't considered, thanks again.