House buying for married sole applicant (shared ownership)

Nurse79

Hi all,

New to this so please be gentle!

My husband and I are currently paying over the odds for a rental which feels like we're throwing our hard earned money down the drain.

As far as we were aware we could not get a mortgage due to husbands poor credit (this was 'earned' prior to meeting/marriage) however I now understand I am able to get a mortgage as a sole applicant, could some kind soul on here provide some real advice? We've read many web pages which appear to support our plans but we're looking for an experienced voice!

We're looking at shared ownership, we have 25% deposit, could I get the mortgage as the sole applicant, I'm also a key worker and how would I go about it?

We have a joint 'bills' account - I've been told to disassociate myself financially from husband. Is this true? How long would I need to do this for?

We've also been told that by putting a 25% deposit down the decision on accepting for the mortgage goes to an underwriter and not the mortgage company to clear the mortgage thus making it easier to obtain. Is this right?

Would I be accepted as the sole applicant in the shared ownership, even though I'm married. On our calculations this would half our monthly property outgoings and get us on the housing ladder!

If this all went through would I be able to add my husband to the deeds at a later date?

Thanks
Nurse79

ethank

If you want to disassociate yourself, you should close your bills account, and then inform all of the credit reference agencies that you no longer have a financial association.

With a shared ownership property, you need to meet financial and housing need checks. If you earn too much, you will not qualify. Also, you are unlikely to qualify for a larger property on Shared Ownership if your housing needs say you could cope in a smaller one.

kingstreet

The rent on the unowned share is taken into account in calculating affordability, as are the cost of dependents, childcare costs etc and your partner is not seen to contribute if he is not party to the mortgage/ownership.

In whose name is the deposit? Joint - it will cause a problem.

Whole market broker would be a sensible first port of call for this.

Nurse79

I don't really want to disassociate myself from my husband however will do so if it will hinder me getting a mortgage.

I earn £20,600pa part time as a basic wage this does not include my unsociable hours pay as that varies monthly according to shifts, this can add 2k + pay to basic wage. We do not have a combined annual salary of over 60k which I believe is the criteria.

I would be looking for a 3 bed house 4 if possible as we have a child and my husband has 2 children that stay with us on a regular basis. If I was the sole applicant and his children are not my dependants do you think I would only be entitled to a 2 bed property?

I have seen one in the area I am looking for its on a 50% shared ownership with the cost being £86250 I can put 25%(not joint- my money) towards that cost and would need a mortgage for £65000. The rental cost is £197 per month. I/we currently have £130 loans each month (never defaulted) and a credit card that gets paid off EVERY month.

Thanks in advance for any notes of wisdom

kingstreet

There's a shared ownership calculator run by the HCA Help To Buy Agent for your area and a lender will run its own affordability calculations based on your income, outgoings and dependents.

You have to "pass" both these calculators.

On here, we can't possibly cover everything, such as your credit commitments, childcare and maintenance costs and if your lender will treat your partner as a dependent.

I suggest you get professional advice on what is possible in your circumstances.