Will removing my name from our joint mortgage affect my credit rating?

Fabriziano

At the moment, my Wife & i have the mortgage (& house deeds) in our joint names.
We have been looking at changing mortage providers. She's on a higher salary now and i have become self-employed.
The mortgage we've now been offered to change to is based on her salary alone & would require my name to be taken off the mortgage & house deeds.
If this happens & my name is removed from the mortgage, would that adversely affect my credit rating? My understandings was that if you have a mortgage on a house & show you part-own property of high value then your credit score is better. Please advise if it would badly affect my credit score. Thanks.

Fabriziano

Anyone able to help please....

Tixy

Have the mortgage company specifically said that you would need not to be named on the mortgage? even if a mortgage is based on one parties earnings there is not usually a problem with the spouse being named on the mortgage.
Do you have problems on your credit file that mean they would not accept you for a mortgage?

Being a homeowner and having a mortgage are usually considered good signs of stability and so potential lenders will likely view you as lower risk.

So not being a homeowner and not having a mortgage any longer could have a small impact on your ability to get credit.

Though I would be more concerned about other potential implications about gifting your half of your house to your spouse.

Fabriziano

Thanks Tixy for replying...
I have no issues on my credit file.
The only reason the mortgage company want me removing from the deeds (& fair enough, i can see their point) is that if my Wife defaults on payment of the mortgage then they want 100% of the property to dispose off as they please. Otherwise, they effectively are providing a mortgage to cover the whole property but with only 1/2 property as a surety.

My only concern (other than heaven forbid anything nasty happens and my Wife disappears and decides to take the house & do a runner......but we are having a solicitor draft a letter to explain the reasons why this change to the deeds is occuring and ensuring that 50% of any proceeds of sale or occupancy is still retained by me).....is whether it will affect my credit rating with the credit reference agencies.

CLAPTON

Fabriziano wrote: »

Thanks Tixy for replying...
I have no issues on my credit file.
The only reason the mortgage company want me removing from the deeds (& fair enough, i can see their point) is that if my Wife defaults on payment of the mortgage then they want 100% of the property to dispose off as they please. Otherwise, they effectively are providing a mortgage to cover the whole property but with only 1/2 property as a surety.

My only concern (other than heaven forbid anything nasty happens and my Wife disappears and decides to take the house & do a runner......but we are having a solicitor draft a letter to explain the reasons why this change to the deeds is occuring and ensuring that 50% of any proceeds of sale or occupancy is still retained by me).....is whether it will affect my credit rating with the credit reference agencies.

that sound like complete nonsense

there is no reason why you both can't be on the mortgage and both on the deeds. The bank is better off as they can pursue both of you in the event of default

HappyMJ

I still wouldn't do it. You can be named on a mortgage and be on the deeds and have absolutely no income whatsoever or even show a loss to the HMRC and even have quite high levels of personal debt (but with a good credit history). I would speak to someone else.

Tixy

A lender will not grant a mortgage unless all people who are on the deeds are on the mortgage. That is understandable. But the usual method is to have you both named on the mortgage and both names on the deeds.

It isn't clear why the lender would not agree to that. Have they explained why this is not an option? Have you considered other mortgage lenders?