Can I get the new mortgage in my own name?

SpiderMonkey

Can I get the new mortgage in my own name?

My wife and I own our home, with 130k left on our joint mortgage. My wife hasn’t worked since our joint mortgage application/our first child. We now have 2 children.

We wish to sell and buy elsewhere.

My wife and I agree that there seems no necessity to ‘affect’ her credit.

My Salary: 25k
Employed same company for 2 + years
No additional borrowing required. I could indeed manage with 100k mortgage.

kingstreet

You may now find with a dependent spouse and two children, affordability doesn't get you a mortgage of 4 x your income.

This will depend on your other outgoings.

Try different lender affordability calculators to see.

ACG

Im confused by your use of affect.
Your wife being on the mortgage is not a bad thing. Its one credit search, maybe 2.
Its going to improve her credit as she is party to a commitment that will presumably be paid each month.

Also, if something were to happen to you she then has to get legal documents to be able to speak to them about the mortgage and look to replace it with one in her name... not easy when you have no income.

Aside from that, not all lenders will do what you want, if your married and the deposit is both of yours (or from equity from a joint house sale) they will want you both on there.

antrobus

SpiderMonkey wrote: »

Can I get the new mortgage in my own name? ...

Only if the property is also only in your own name. And even then I'd imagine that any sensible lender would insist on your wife signing some kind of legal document surrendering any beneficial interest in the property and obtaining independent legal advice.

It's a lot of faffing about for no real benefit.

Thrugelmir

SpiderMonkey wrote: »

My wife and I agree that there seems no necessity to ‘affect’ her credit.

What do you think it may "affect"?

Rollinghills

The application will not affect your wife's credit rating, why do you think so?

But there is the issue of affordability. Most banks penalise stay at home mothers. Ie they will be willing to lend more to you if you declare 3 dependants versus applying jointly with 2 dependants. I think it is wrong but we have tried a few banks (first direct, hsbc, nationwide) and they do that. The effect is significant, not marginal.

We applied for a mortgage in only my husband's name. I gifted a large part of the deposit. We were worried this would be an issue but in the end it wasn't to our knowledge and we now have an offer from nationwide. I only had to sign the gifted deposit form, no further paperwork. However this can be an issue for some lenders.

But if this is a ploy to keep your wife's name off the deeds so she has no rights to the house in case you split then it is deplorable and likely futile. I apologise if it isn't but your argument about 'affecting' her credit rating is so weak that it sounds suspicious.

amnblog

A number of Lenders will not allow you to borrow without it being a joint application with your wife.

Affordability also sounds tight with 4 in the family.

Consult a broker to establish the best way forward.

SpiderMonkey

Thanks for all the replies.

When I say affect what I mean is why should we use her 'credit' for zero financial benefit.