Suggestion needed:Single or joint mortgage

calltobala

Hello Experts

I am going to be a first time house buyer and started looking for houses now.

I am earning member and my wife never worked so far due to childcare.

Is it necessary to include my wife name in the mortgage(she never worked)?

What are the pros and cons as a single mortgage responsible person?

Please suggest what is better for longer term run.

Thrugelmir

Irrespective of whether your wife is named on the mortgage or not. She will be treated as a financial dependent. This will impact the affordability.

amnblog

Many lenders will insist that a married applicant includes their wife on the application.

glasgowgirl80

My broker has found two lenders who do not view my husband as a dependent and neither of those insisted that he be named on my sole application so it can be done. Get a broker though because your options will be limited.

We have done a sole application for various reasons to do with our circumstances but if you avoid it then your life will be much easier!

goodwithsaving

She might not work, but her (non-financial but still worthy of recognition) contribution is looking after your children which saves quite a lot on care. Surely?

ACG

A lot of lenders will not do sole applications for married couples (there are exceptions).
Of those exceptions a lot will include her as financially dependent.

Your pool of lenders following those 2 is going to be very very slim, which in turn may mean you are restricted in terms of rates or how much those lenders will lend.

The other thing is that if you do it in your sole name and something happens to you, your wife is then in a difficult position of trying to obtain a mortgage to pay off the current lender with:
1) No income,
2) Whilst dealing with whatever has happened.

My suggestion to anyone is to just do things the right way.

andyfromotley

goodwithsaving wrote: »

She might not work, but her (non-financial but still worthy of recognition) contribution is looking after your children which saves quite a lot on care. Surely?

And under the law it is recognised. Irrespective of whose name is on the mortgage for legal (and divorce purposes) its a marital asset.

The key word in the OP's post being wife. If it was 'partner' then a completely different ball game.

calltobala

Thanks a lot for your suggestions.
I was not aware that there are some many things to consider.

I have been told by some of my friends that bank will lend money based on my earnings & my savings only and they won't include my wife name(not worked in last 4 years) in the house deed (All the money comes from my savings account). But her name will be included as my financial dependent only.

I am wondering if the mortgage lender include my name for Mortgage responsibility & house deeds. My name and my wife name for the person living in the house.

Please let me know if the above is correct.

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I understand the following points from this threads
Disadvantage to consider:If bank repossess and it would be difficult for my wife to get new mortgage( based on that situation)

2. If we relocate in few years and my wife starts working again then we can buy house on our name and sale the old house to buy new one.

Rollinghills

We are going through the same thing. My husband applied alone as I am not working at the moment. We then thought we should change it but a mortgage calculator gave us a much lower amount for what the bank would be willing to lend us. So to make sure that our application has a better chance of being accepted we are proceeding with my husband as sole buyer. As some deposit money came from me I had to sign a 'gifted deposit' form and only his name will be on the title deed. This has some negative legal implications for me so I will seek legal advice, one necessary thing is for my husband to have a will and leave the house to me, otherwise it's not automatic even for a married couple after a certain threshold.

I actually think it's outrageous a stay at home mum is considered as a liability not an asset! I am planning on going back to work, surely, having a wife who can potentially work and add to family income should be a plus not a negative? I am very annoyed by this!

glasgowgirl80

In my situation the mortgage and title deeds will all be in my name, my husband is not named as a dependant but the solicitor/lender requires him to sign a 'matrimonial consent' form (we are in Scotland, I think this may be a 'consent to mortgage' in England). It is essential if you are doing this (in my opinion) to have life cover and a will to ensure that the spouse not named on the mortgage/title does not end up homeless if you die. In the event of divorce however they could end up in an unfortunate position, so that is something they need to be aware of. In our case we both have been through messy divorces involving property before so are well aware of the risks.

Thrugelmir

Rollinghills wrote: »

one necessary thing is for my husband to have a will and leave the house to me, otherwise it's not automatic even for a married couple after a certain threshold.

I actually think it's outrageous a stay at home mum is considered as a liability not an asset!

Priority is to ensure that the mortgage debt is repaid. Otherwise the will may mean little.

Nothing to do with assets it's income that lenders are concerned with. That's income today not speculative forecasts either.