Adding Hubby to Mortgage?

MrsPBikerChick

Hi everyone, after a little bit of advice.

I bought a house 2yrs ago (when hubby and I were engaged) which at that time was placed in my name with the mortgage in my name only. Reason for this was that the deposit was provided by my parents with the private understanding that they would effectively hold a stake in the property and any subsequent one I bought. Also hubby was fresh out of an apprenticeship. His residence at the property was agreed by the mortgage company and he signed the appropriate form thingy they ask for (which I think agrees he lives there but the mortgage company's interest takes precedence over his).

However, my incredibly generous folks made a wedding gift of the deposit money so the house is now completely mine, beholden to none (except the mortgage company). Despite the registration in my name the house has always been "ours" so now I would like to add his name to the title so we officially jointly own it but I assume I would also have to add him to the mortgage as well. I have no problem with this but I do have a couple of questions if anyone is able to offer advice?

1. Will this require a whole new mortgage application?
I'd rather not have to go through this as obviously there will be fees. Plus hubby is a contractor (which I understand can make employer references tricky) and is hoping to start uni in September so credit-wise he's possibly not a mortgage company's dream applicant!

2. If so, what if they don't like him?
I earn about £6k per annum more than I did when I got the mortgage and the remaining balance is less that 3x my salary alone, but would they say no despite this if they didn't like him? And if they did would they then refuse to continue with the mortgage I currently have? :eek:

Sorry if these are dumb questions, but I really don't want to risk talking to the mortgage company until I've got a better idea of what they're likely to say. The last thing I want is to find myself with serious problems!

kingstreet

He'll be vetted as if it were a new application, so his income is unlikely to be accepted by the lender at present. However, this may not be a problem if you can afford the mortgage alone.

The process is known as a transfer of equity and once the lender has completed its checks, it will hand the matter over to a solicitor for the legal work to be done.

Normal cost around £400 TO £600 inc lender and legal fees.

ValHaller

MrsPBikerChick wrote: »

.... Sorry if these are dumb questions, but I really don't want to risk talking to the mortgage company until I've got a better idea of what they're likely to say. The last thing I want is to find myself with serious problems!

The worst thing they can say is 'no'

MrsPBikerChick

Thanks kingstreet, that's really helpful. The fees you suggested are much higher than I was expecting though so that might well put the kibosh on it for now - we're saving hubby to go to uni and that would be a big chunk to pay out when its not strictly necessary at the moment (we're not moving any time soon or anything). It's not like the mortgage company don't know he's living here so I guess it's worth at least asking them hypothetically. Would they perhaps add the fees to the mortgage like the original set up fees? Fortunately hubby isn't particularly bothered about the situation, its more me that would like us to be proper joint owners. Maybe something to put off until he's finished uni and we're looking to move.

Goldiegirl

It sounds as if you are not borrowing any additional money at this point, just adding your husband to an existing mortgage.

They won't be interested in his income, as they already know the mortgage is affordable as a sole mortgage.

What they will be interested in is him being above to prove his identity, being on the voters roll and and him passing their credit scoring system.

Unless you know of any adverse information that may be held about a poor credit history, this application sounds quite straightforward, and they'd probably approve the transfer to your joint names without any fuss.

kingstreet

MrsPBikerChick wrote: »

Would they perhaps add the fees to the mortgage like the original set up fees?

They may add their fee, which is typically £150 of the suggested £600, but you'll have to pay the solicitor's costs.

As you say, nothing urgent, so tackle it when the fee money is less of an issue.