Mortgage in one name

Jane91

We're looking at buying our council home, I've had a poor credit history and although I'm debt free I have 4 defaults on my credit file.

My husband is fine no credit problems etc, if he has the mortgage in his name and we both pay the mortgage but split up how would I stand?

Would I be out without anything?

Thank you any advice please

holly_hobby

Unless you make a formal agreement (ie a trust dec stating what would happen with the house division on separation), or the court awards you (generally where there are children) - you have no legal claim, nor can you prevent his later sale etc.

Please remember that the actual discount receipient has to be party to the mortgage, so if its you who have earned the discount, you will need to be party if you wish to purchase.

Hope this helps

Holly

koexelek

holly_hobby wrote: »

Please remember that the actual discount receipient has to be party to the mortgage, so if its you who have earned the discount, you will need to be party if you wish to purchase.

Very good point. A lot of right to buys fall foul of this rule. Bit of a catch 22 when you have to be at least named on a mortgage but a lender won't allow it.

steve4mandy

Hi Koexelec,

I am in exactly the same position as the OP husband, and the RTB2 has been issued solely in my name, when we submitted RTB1 we told the council a brief financial history, my wife then signed to say she would not be party to the application.

We are awaiting valuation, so your comments are a bit un-nerving to say the least, as a joint mortgage application would be a total no go.

Please advise, as my heart rate is now racing!

many thanks.

holly_hobby

If the discount is yours - no problem (she'll have to sign a consent to vacate from the lender).

In the original post, just highlighing that whomever has earned the discount has to be party to any mge application - as we don't know if its the OP or their spouse (with the defaults), whom has the RTB option.

Hope this helps

Holly

koexelek

steve4mandy wrote: »

Hi Koexelec,

I am in exactly the same position as the OP husband, and the RTB2 has been issued solely in my name, when we submitted RTB1 we told the council a brief financial history, my wife then signed to say she would not be party to the application.

We are awaiting valuation, so your comments are a bit un-nerving to say the least, as a joint mortgage application would be a total no go.

Please advise, as my heart rate is now racing!

many thanks.

Holly is right, don't panic !
You are OK to have it in one of your names if you are both eligible for the RTB.
What you can't do is transfer the RTB to a spouse and not be a party to the susequent mortgage yourself