Quick question if I may.

Tinkaf1

Hubby and I owned our previous home for just over 10 years. We were both on the mortgage, both on the deeds etc. We have now sold up, moved into rented while we look for our new home (easier as it was the other end of the country) and we are still looking after such a long time.
I gave up work when our youngest child came along (about 3 years ago) and will continue to look after him before returning to work in say 2 or 3 years time.
When we get our mortgage this time around it will just be my husband that is earning, so the mortgage will be paid by him until I return to work.
Does this mean that is is just his name on the deeds? Sorry if this is a bit stupid, but obviously we built up our equity together and I will be returning to work at some point, but if only his name is on the mortgage does it mean it is just his name on the deeds and in effect "his house"?
Thanks to anyone who takes the time to read.

JimmyTheWig

Tinkaf1 wrote: »

if only his name is on the mortgage does it mean it is just his name on the deeds and in effect "his house"?

That would be the case if it is only his name on the mortgage, but...

When we get our mortgage this time around it will just be my husband that is earning, so the mortgage will be paid by him until I return to work.
Does this mean that is is just his name on the deeds?

No, there is no need for that to be the case.
Even though you are not earning there is no reason why you can't be on the mortgage. Even though the money is coming out of his wages rather than both of your wages, you can still have a joint mortgage.
A joint mortgage means, of course, that you both have a responsibility to pay it. But as long as it gets paid then the mortgage company don't care where it comes from.

Tinkaf1

Thank you. Does switching to a joint mortgage mean they will suddenly offer us less? Say because there are 2 people responsible? Obviously I would rather my name be on the deeds if I can, but not at the expense of losing say 10k worth of borrowing potential.

bluedrop

We are buying our first property soon....
My husband has a permanant job and I run a business. Since I dont have my 3yrs accounts yet, I cannot use my earnings for mortgage. Also, by choice, we want to be able to comfortably afford our payments with Dhs income alone. We are borrowing 75% LTV and to the max we are allowed to borrow on DHs income. They put me on the mortgage with zero income. The mortgage advisor did indicate that it might reduce the amount we are allowed to borrow, but in the end they allowed us to borrow what we wanted.

This tool might help:
http://www.halifax.co.uk/mortgages/forms/minicalc/container.asp

In summary, I am going to be on the mortgage and on the deeds even though my income is zero for mortgage purpose.

Tinkaf1

OMG!!! Using that link i have discovered that just by adding my name and changing nothing else, the amount "we" could borrow would be 36k LESS than just him on his own. What the HELL is that all about?

JimmyTheWig

Tinkaf1 wrote: »

Thank you. Does switching to a joint mortgage mean they will suddenly offer us less? Say because there are 2 people responsible? Obviously I would rather my name be on the deeds if I can, but not at the expense of losing say 10k worth of borrowing potential.

No, there is no need for them to offer you less. (*)
An online calculator may say that they offer less, but there is no reason why they can't use the single applicant rules on your husband's income for a joint application.

(*) Note that some lenders use affordability as well as / instead of income multiples. In this way they may offer a married man with a non-working wife less than they would a single man, on the basis that his wages have to support two people. But that would be the case whether he applied for a mortgage on his own or you both apply for a joint mortgage.
And, as an aside, the last time we applied for mortgage funds (nearly 4 years ago) we were able to use child benefit to help with the affordability calculations which wouldn't have been possible had my wife (with zero income) not been on the application as the benefits are in her name.

Tinkaf1

Thank you both. I guess once something turns up we will just have to sit down and thrash it out with the lender. At the moment we are struggling to find anything suitable. Estate agents are also a varied bunch and I am starting to think that I went into the wrong career (teaching) as it seems like the local area is in dire need of some estate agents with some decent basic manners, or any natural customer service ability! grrrr.

Land_Registry

The lender is likely to insist on you using a solicitor and you should discuss the issues around not being on the mortgage/deeds with them.

From a registration perspective you could have 1 on the title (deeds) and 2 on the mortgage but not the other way round.

JimmyTheWig has already posted re there being no reason not to be on both and two key questions to ask yourself or your solicitor are
What benefit is there in not being on both? and What risks are there if I am not on both?

If you decide not to be on the title (deeds) then the legal ownership would rest with him i.e. it is 'his house' - as such you may need to consider how to protect your 'interest' or 'share' in the property if you chose that route.

ValHaller

JimmyTheWig wrote: »

.... An online calculator may say that they offer less, but there is no reason why they can't use the single applicant rules on your husband's income for a joint application.

Or equally, no reason why, for a single applicant, they might not use joint applicant rules, taking into account a partner and a child.

OP, I would urge you to make sure you are on the deeds and accept a smaller mortgage if needs be.

G_M

Tinkaf1 wrote: »

Thank you both. I guess once something turns up we will just have to sit down and thrash it out with the lender. .

I imagine this was a slip of the keyboard.

You mean,of course, " thrash it out with the Independant Mortgage Broker".

If you just talkto one lender, you will be stuck with their policy, which may not be best for you.

A broker will find/recommend the most appropriate lender, given your individual circumstances, and preferences.

martinsurrey

As you are married, what is on the deeds would be irrelevant in the event of divorce, as what the court says goes and is based on the facts of the situation NOT a bit of paper at the land registry.

So I don’t really see then need/point of pushing it or sacrificing a better rate for it.