Adding my partner to a Nationwide Mortgage

uptomyeyeballs

I've just applied for a mortgage from Nationwide to buy a property. The process is underway. Myself, my partner (we aren't married) and her son will live there (eventually). I applied in sole name for the mortgage because she has been self employed for less than 12 months and we thought it would be quicker and we'd have less hassle with it.

Anyhow, the solicitor has informed us that, because the mortgage is in my sole name, then ownership of the house will be as well. If I want my partner to benefit in the event of my death, i'll have to will it to her, otherwise it will go to my blood relatives. At the moment, we don't have wills. I also have a house rented out that will need covering, so I understand we need to do this pretty pronto.

Is it possible to get her name added to the deeds easily, or will we need to go through a whole new re-application, with her financial details included to be able to do that? We want to be joint owners of the property, but it seems to be a little more complicated than we'd hoped.

CLAPTON

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kingstreet

Effectively, it's a new application as she will have to be vetted like any other new borrower. Check the Nationwide affordability calculator to see if it still fits with a non-working applicant and a dependent as it may not be possible to have a joint mortgage that size until her income can be taken into account.

You'd then need to buy in your sole name and do a transfer of equity into joint names at the time she can provide proof of income.

Will and life cover written in trust for her benefit are the minima required in these circumstances.

uptomyeyeballs

I've talked to our mortgage advisor about it and she's going to talk to Nationwide. If my partner is involved in the application, it's going to affect affordability as she has personal loans related to her business, so may even result in the original mortgage offer/rates being withdrawn if we insist on her name being on the application, and possibly make the second mortgage unaffordable on 'borrowabilty' grounds (the very reason we did it this way in the first place). It'll also slow down the house purchase and be more expensive if we have to do it all again.

Maybe better to just get those wills/trusts made and grit our teeth.

Wh05apk

Sounds like another bodge by advisor/broker, if you are a "permanent" couple then it should be in joint names, just because your partner has just gone self employed will not matter as affordability should have included her as a dependent anyway, just put her down as houseperson with her income not used.

Wh05apk

Just seen your post just before mine, sounds like your "advisor" conveniently "forgot" to mention your partner as a dependent to boost affordability?


Is she contributing to the deposit in anyway?

uptomyeyeballs

Wh05apk wrote: »

Just seen your post just before mine, sounds like your "advisor" conveniently "forgot" to mention your partner as a dependent to boost affordability?


Is she contributing to the deposit in anyway?

We made the advisor aware of the fact that affordability was critical because both my let property (on consent to let) and the new one had to be fundable solely from my salary. Probably our fault, but seems like we'll just have to live with it. My partner will be contributing 37.5% to the deposit of £20k. She isn't dependent on me, she pays herself a healthy wage.

Edit to allow the thread to be correctly interpreted : We don't live together at the moment either, she has her own house and mortgage.

uptomyeyeballs

Wh05apk wrote: »

Sounds like another bodge by advisor/broker, if you are a "permanent" couple then it should be in joint names, just because your partner has just gone self employed will not matter as affordability should have included her as a dependent anyway, just put her down as houseperson with her income not used.

We are already at valuation stage, so the mortgage application has already been made. I got a positive decision in principle based on my own salary, so went ahead with it. I anticipate I'll only have the mortgage for 5 years anyway, so maybe not too much of a problem. She'll just have to make sure she's nice to me until then :-)

Thrugelmir

uptomyeyeballs wrote: »

My partner will be contributing 37.5% to the deposit of £20k.

This will be a major issue for any lender.

If the mortgage is affordable in your name alone. Then your partner being added shouldn't be an issue.

If your partner and her son are financially dependent upon you then this changing the picture.

Walk carefully with the mortgage applications that you make.

Wh05apk

uptomyeyeballs wrote: »

We made the advisor aware of the fact that affordability was critical because both my let property (on consent to let) and the new one had to be fundable solely from my salary. Probably our fault, but seems like we'll just have to live with it. My partner will be contributing 37.5% to the deposit of £20k.

You could have problems then, your solicitor will need to see confirmation of where the deposit is coming from, when they see your partner is contributing, they should report this back to the lender, who will not like it, as they will not allow a "gifted" deposit from someone who is occupying the property.


Can I ask where your advisor is from? Nationwide/estate agent of independent?

Funny_old_game

This has got trouble written all over it. Not only is the app incorrectly submitted but the deposit issue will make NW rethink the accepted us.

If your at val stage now, expect done troublesome phone calls in a week or 2 unless you change the app.

NWide's MMR rules could scupper thus mortgage.

Having minimal self emp status doesn't mean the mortgage cant proceed. You need yo get them added
now. Circumventing the SE issue will only bide time until the deposit issue arises.