Joint applicants for mortgage

dav10

For a homeowner's mortgage (or sometimes called equity withdrawal), is it possible to add an applicant to the mortgage application who does not own the house to be mortgaged? This would primarily be for income reasons but without the limitations of a guarantor mortgage.

NB/ For unrelated reasons, it isn't possible at the moment to actually transfer a share of the property to the other applicant.

Thrugelmir

Yes it's possible to be included on the mortgage but not the property title deeds.

What limitations are you referring to?

dav10

Thrugelmir wrote: »

What limitations are you referring to?

Some lenders don't offer the same products at the same rates if a guarantor is needed.

Broadly speaking, what would be the pros and cons of having the second person as joint applicant or guarantor?

Thrugelmir

Suspect that you would struggle to find lenders willing to offer a guarantor mortgage. As with MMR now in place the application fails at the very first hurdle, i.e. the applicant themselves.

kingstreet

There are one or two lenders who will allow more borrowers than there are owners. As there will be two incomes to service the debt, the amount which can be borrowed will be higher.

However, if this is a capital raising remortgage the maximum loan to value will be lower than usual and the purpose of the funds being raised will also be questioned.